Agency Problems and the Fate of Capitalism

Randall Morck and Bernard Yeung

in The Oxford Handbook of Capitalism

Published in print April 2012 | ISBN: 9780195391176
Published online November 2012 | | DOI:

Series: Oxford Handbooks

Agency Problems and the Fate of Capitalism


This article discusses agency problems and capitalism. It suggests that real social costs of agency problems lie deeper, in the inner workings of the economy. Inefficient resource allocation by firms costs money, as do the monitoring and control mechanisms that might limit those problems. Some level of agency costs is thus unavoidable. But both firms and economies can seek ways to reduce unavoidable agency costs.

Keywords: agency problems; capitalist; corporate governance; social costs

Article.  20049 words. 

Subjects: Economics ; Financial Markets

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