The main agent problem makes reference to dilemmas out-of encouraging one party the new representative to do something for the best attention of the other cluster the main. From inside the a friends, the owners of one’s property (brand new shareholder) would be the principals in addition to executives of one’s company would be the agencies. The latest stockholders of team approve the fresh professionals to manage and you will have fun with the info and then make profit toward stockholders. The main cause of the principal broker problem is that the suggestions asymmetry amongst the dominating therefore the broker and the dominant and you may representative has different passion. Generally, this new Representatives are definitely the professionals of the tips and possess even more advice compared to principals. When you look at the a family, the fresh executives of the organization gets considerably more details regarding the business than the stockholders of your providers. The newest agents are able to use this asymmetric advice to track down notice to possess by themselves instead of the principals.