The principal-agent problem sits at the nexus of several modern economic dilemmas. The scenario involves a principal, for example, a shareholder, who entrusts funds or resources to an agent, often…
Though it might seem trivial, information asymmetry plays a profound role in market dynamics, often causing significant issues. Asymmetric information manifests when one entity in an exchange holds a considerable…
Defined within the free market context, market failure denotes the ineffective allocation of goods and services. This imbalance transpires when the volume of services or goods supplied does not align…
The subject matter of Economics is broadly divided into two sub-fields: microeconomics and macroeconomics. Every topic, theory or application in Economics can be broadly classified into these two branches. Although…
