Saturday, March 28, 2015

Principal-agent problem

I think what is going on here is that the local CVS franchise trying to bribe customers to give it a high score in survey from the central corporate office.  Thanks to my MPA degree I can recognize this as a principal-agent problem.  Perhaps if I go back for a doctorate I will learn what to do about it.  Or I suppose Gramsci or someone else from the Marx Madness bracket would ask, why do I immediately see it from the perspective of the corporate office, which does not want a franchisee to manipulate the system?  Why does anything have to be done about it?

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