Epistemics at Work: The Theory of Mind in Principal-Agent Relations

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    Abstrakt

    Agency theory studies the impact of and remedies to asymmetrically distributed information in principal-agent relations. Yet, it does so in a surprisingly binary manner: It assumes the principal to be perfectly knowledgeable of some pieces of information (such as the agent’s risk aversion), while others (such as the agent’s true effort exerted) are considered to be perfectly private information of the agent. Agency theory thus makes highly asymmetrical assumptions about the knowledge of principals and agents, largely neglecting the role of individual differences in the human capacity to read other people’s desires, intentions, knowledge, and beliefs—that is, to have an imperfect theory of someone else’s mind. This study explores the implications of instilling agency theory with a more realistic account of this (bounded) human capacity.
    OriginalsprogEngelsk
    TitelThe Oxford Handbook of Strategy Implementation
    RedaktørerMichael A. Hitt, Susan E. Jackson, Salvador Carmona, Leonard Bierman, Christina E. Shalley, Douglas Michael Wright
    Antal sider18
    Udgivelses stedOxford
    ForlagOxford University Press
    Publikationsdato2017
    Sider101-126
    Kapitel5
    ISBN (Trykt)9780190650230
    DOI
    StatusUdgivet - 2017
    NavnOxford Handbooks in Business and Management

    Bibliografisk note

    Published online 3 February 2015

    Emneord

    • Agency theory
    • Principal-agent relationship
    • Epistemic assumptions
    • Theory of mind
    • Cognition

    Citationsformater

    Linder, S., Foss, N. J., & Stea, D. (2017). Epistemics at Work: The Theory of Mind in Principal-Agent Relations. I M. A. Hitt, S. E. Jackson, S. Carmona, L. Bierman, C. E. Shalley, & D. M. Wright (red.), The Oxford Handbook of Strategy Implementation (s. 101-126). Oxford University Press. Oxford Handbooks in Business and Management https://doi.org/10.1093/oxfordhb/9780199935406.013.8