Question: Why is it so difficult to solve the agency problem? Because the incentive of the principal is always higher than the incentive of the agent.

Why is it so difficult to solve the agency problem? Because

Why is it so difficult to solve the agency problem? Because the incentive of the principal is always higher than the incentive of the agent. Because the parties involve, by definition, do not have aligned interests. Because the agent looks out for themselves and not for the principal. Because the transaction provides for misaligned incentives between the parties involved

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