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Why Some Persistent Problems Persist

Bibliographic Data

ID3188352
AuthorsRobert Powell (0000-0003-2768-0555, University of California, Berkeley, corresponding author)
Year2019
Volume113
Issue4
Pages980-996
Publication date2019-11-01
Open AccessYes
TypeARTICLE
VenueAmerican Political Science Review (JOURNAL)
Journal identifiersISSN: 0003-0554 • E-ISSN: 1537-5943
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0003055419000364
OpenAlexW2963518779
LanguageEN
Citations received5
References cited26

Recent work on counter-insurgency, client states, foreign aid, and proxy wars uses a principal-agent framework to study the principal's ability to induce an agent to exert effort on the principal's behalf. This work broadly emphasizes the moral hazard problem and the actors' limited commitment power. The latter is usually addressed through the logic of repeated games in which reneging on an agreement triggers future punishment. This study analyzes a related incentive problem that undermines the principal's ability to induce an agent to exert effort on its behalf. The repeated-game's enforcement mechanism tends to break down if the principal is trying to get the agent to resolve a problem that, if resolved, (i) creates an ongoing problem for the agent and (ii) simultaneously significantly reduces the agent's ability to impose future costs on the principal. The principal cannot induce the agent to exert much effort in these circumstances, and the problem persists

Computer security · Corporate governance · Economics · Enforcement · Incentive · Microeconomics · Moral hazard · Political science · Principal (computer security · Principal–agent problem · Proxy (statistics · Punishment (psychology · Computer Science · Finance · International Relations and Foreign Policy · Law · Political Conflict and Governance · Politics and Conflicts in Afghanistan, Pakistan, and Middle East · Psychology · Social Psychology

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Citations per year0.83
Citation span2020 - 2025 (6)
Highly citedNo

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