The Theory of Agency: A Framework
In: Barry M. Mitnick, The Theory of Agency (Cambridge University Press, Forthcoming).
81 Pages Posted: 11 Nov 2017
Date Written: 1975
This paper presented the core part of the then newly-developed theory of agency, which had been independently proposed by Stephen Ross and Barry Mitnick. The paper described a typology of agency relationships based on the nature of the consent between agent and principal, the source of specification of the agent's acts, and the degree of discretion possessed by the agent. Common behaviors and norms of agency are described, including the fiduciary norm. Problems of agency are reviewed, and the policing process examined. Applications are made to the legislative representative and to the ambassadorial relation. This paper reflects continued development of the approach over what appeared in Mitnick's original 1973 paper.
Note: This is a scan of the original paper, which was not created in electronic form. As a result the file size is large (around 20MB).
Keywords: agency theory, principal, agent, agency costs, policing, incentives, authority, fiduciary norm, representative, ambassador, diplomacy
JEL Classification: D23, D63, D64, D73, D78, D80, D82, D83, L50
Suggested Citation: Suggested Citation