Uploaded November 2021 | Updated September 2026, 1 week ago

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This video shows the key characteristics of a Principal-Agent model in microeconomic theory. I walk through three models: a manager setting commission for a sales person, a safety inspector testing products and a tournament host setting the tournament prize. All three look at exogenous and endogenous variables.

Link to my course on microeconomic modelling: ashley-s-site-9d78.thinkific.com/courses/your-first-course