00:01
Hey guys, so today we're going to be talking primarily about the principal agent problem and asymmetric information.
00:07
So basically, in any public company or corporation, the principal agent problem between the management and the ownership results directly from, you know, information as symmetries.
00:17
So we kind of want to answer the question today, like what information, if known, would prevent this principal agent problem? so in order to answer our question here, we should talk about what the principal agent problem.
00:30
Exactly is.
00:31
And to try to make this simple, the principal agent problem occurs when one person, the agent, is allowed to make decisions on behalf of another person, which would be the principal.
00:53
And basically, there's always issues there are conflicts of interest in that the principle.
01:03
Cannot always make sure that the agent is going to act in the principal's best interest, essentially...