The relation of principal and agent is ordinarily created by agreement of the parties.

本人和代理人的关系一般是通过双方的协议产生的。

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The result of study indicate it can relieve the moral hazard both of principal and agent.

研究结果表明：在初始契约中写进解聘补偿可有效缓解委托代理双方的道德风险。

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The authority of the agent to act for and bind the principal is the very essence of the principal and agent relationship.

代理人以代理权为委托人行事同时委托人受此约束是委托人和代理人关系的本质。

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The principal can limit divergences from his interest by establishing appropriate incentives for the agent and by incurring monitoring costs designed to limit the aberrant activities of the agent.

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That is held to result when the market suffers from inadequate or inaccurate information delivery, inadequate or insufficient competition, principal-agent problems (where agents fail to represent the interests of their principals), and externalities (where market actors fail to bear the costs of their actions or choices), among other problems.

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In terms preferred by economists, a situation defined by a principal-agent problem (such as you hiring a doctor or car mechanic who gets to both define your problem and figure out what to charge you for fixing it) was replaced by a much simpler employment relationship: would-be hustlers found themselves being turned into professional, generalist managers.

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