The author explicates a new theory, which has had a strong diffusion in the last years. This theory is named "Asymmetric information" and is about economics. Stiglitz-Spence-Akerloff had won the Nobel for this fact in 2001.
The question is that the manager and the shareholders can have in the agency the same informations or no.
If they don't have it, we can consider the case of the asymmetric information.
If they have same informations, we consider the model of perfect information.
The second case is important in the sense of the labor rights and the pollution problems.
- Create your FREE Amazon Business account to save up to 10% with Business-only prices and free shipping.