search query: @author Prendergast, C. / total: 8
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| Author: | Prendergast, C. |
| Title: | Consumers and agency problems |
| Journal: | Economic Journal
2002 : MAR, VOL. 112:478, p. C34-C51 |
| Index terms: | Consumer research Agencies Problem solving |
| Language: | eng |
| Abstract: | Consumers solve many agency problems, by pointing out when they believe that agents have made mistake. The author considers the role that consumers play in inducing efficient behaviour by agents. He distinguishes cases where consumers have similar preferences to the principal, from those where they diverge. In the former case, allowing consumer feedback improves allocations, and increasing consumer information is unambiguously beneficial. Where consumers disagree with principlas over desired outcomes, which characterises many public sector benefits, consumers' feedback about the performance of agents can reduce welfare. |
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