--- publish: true aliases: [Naval,Principal-Agent Problem — Act Like an Owner] --- Principal-Agent Problem — Act Like an Owner - Naval ![rw-book-cover|200x400](https://readwise-assets.s3.amazonaws.com/static/images/article3.5c705a01b476.png) ## Metadata - Author: **Naval** - Full Title: Principal-Agent Problem — Act Like an Owner - Category: #podcasts - URL: https://share.snipd.com/episode/ed81d417-0909-4303-9202-19d4b314c768 ## Highlights - The Principal Agent Problem Summary: Now, the principal agent problem pops up everywhere in micro economics. The way that they try to characterize it is that the principals incentives are different in the agent's incentives. So the owner of the business wants what is best for the business and will make the most money. The agent generally wants whatever will look good to the principal, or might make them the most friends in the neighborhood or in the business, or might make them personally the most money. Transcript: Speaker 1 Now, the principal agent problem pops up everywhere in micro economics. The way that they try to characterize it is that the principals incentives are different in the agent's incentives. So the owner of the business wants what is best for the business and will make the most money. The agent generally wants whatever will look good to the principal, or might make them the most friends in the neighborhood or in the business, or might make them personally the most money. ([Time 0:01:24](https://share.snipd.com/snip/0d5a8fee-c46d-44e7-9ad7-878557f8a454))