principal-agent problem

noun

The problem that a person or entity serving as an agent for another, and able to make decisions on the other's behalf, may be motivated instead to make decisions that benefit themselves.

Similar
agency dilemmaagency problem
Ask AI about this wordChatGPTClaudePerplexityGoogle AIGrok

Meanings

nounprincipal-agent problem (plural principal-agent problems)

plural principal-agent problems

  1. The problem that a person or entity serving as an agent for another, and able to make decisions on the other's behalf, may be motivated instead to make decisions that benefit themselves.

    Synonyms: agency dilemma, agency problem

Synonyms & antonyms

nounThe problem that a person or entity serving as an agent for another, and able to make decisions on the other's behalf, may be motivated instead to make decisions that benefit themselves.

Similar
agency dilemmaagency problem
Also see
agency dilemmaagency problem
Cite this entry
APA

principal-agent problem. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/principal-agent%20problem

MLA

“principal-agent problem.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/principal-agent%20problem. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “principal-agent problem,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/principal-agent%20problem.

Source: principal-agent problem on Wiktionary, CC BY-SA 4.0.