Instacart allows an individual who needs groceries (the principal) to hire a personal shopper (the agent) to
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Instacart allows an individual who needs groceries (the principal) to hire a personal shopper (the agent) to go to the store and buy their groceries for them. The principal makes a list of grocery items needed. The agent goes to the store, buys those items, and delivers them to the principal.
(1) Suppose that the agent gets paid 10% of the total amount on the receipt. Describe how this arrangement has a principal-agent problem.
(2) Is there a solution to this or at least some way in which this arrangement could be improved to lessen the principal-agent problem? Describe at least one partial solution.
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date: