Professor Richard Thaler: Masters in Business (Audio)
Masters in Business
00:00
Theoreti Agency Theory, Principals and Agents, Right?
He believed that reputation would have prevented banks from doing the really dumb things they did. One of my missing e not seeing that they are, although he did do amia culpa post financiali did do a mia culpa. I think in a lot of cases it's what i call a dumb principal problem, right? So, you know, let's take the banks that we're paying mortgage brokers too grand a pop to sell mort ages without any documentation. Now, i'm not blaming the mortgage broker. That's what he's getting paid to do. The usual idea is that things go wrong because the agent, the employee isn't doing their job,.
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