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J As an example, consider the problems faced by a homeowner who hires a real estate agent to sell her home.It may be difficult for the homeowner to determine whether the agent is truly using his best efforts to market the house and also difficult to determine whether, if the house sells or does not sell, the agent is responsible.2 See, e.g., Paul Milgrom & John Roberts, Economics, Organization & Management 214-39 (1992) (devoting more than 25 pages to developing incentive contracting and other solutions to standard principal-agent problems, with no mention of the problem of getting the agent to perform).11 See infra Section I.B (discussing team production theory of corporations).
Blair et al. (Mon,) studied this question.