With very rare exceptions, no principal can count on a hired agent to represent faithfully and consistently the principal’s interests. The principal-agent problem goes a long way in explaining why “representative government” falls far short in carrying out the people’s wishes.
Principal-Agent Theory and Representative Government
By Robert Higgs
This article
appeared in
the Winter 2017/18 issue of The Independent Review.
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(2 pages)
| Other Independent Review articles by Robert Higgs | ||
| Fall 2019 | Pressure-Release Valves in Participatory Fascism | |
| Winter 2018/19 | Two Worlds: Politics and Everything Else | |
| Fall 2018 | Against the Whole Concept and Construction of the Balance of International Payments | |
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