Publication: Indian principal-agent theory, or, how Varuṇa helps the king to be just
Indian principal-agent theory, or, how Varuṇa helps the king to be just
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Wiese, H. (2016). Indian principal-agent theory, or, how Varuṇa helps the king to be just. Asiatische Studien - Études Asiatiques, 70(2), 571–589. https://doi.org/10.1515/asia-2015-0045
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Economic principal-agent theory deals with asymmetric information. It has two aspects. (i) If one person is better informed than another one, the former may outwit the latter. Kauṭilya, the Arthaśāstra’s author, and other artha or dharma authors had a very good understanding of outwitting. (ii) Economic theory teaches that the person in command of superior knowledge may not always be able to benefit from this knowledge. He may need the uninformed side to agree to some mutually beneficial venture. The very fact of asymmetric informatio
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Wiese, H. (2016). Indian principal-agent theory, or, how Varuṇa helps the king to be just. Asiatische Studien - Études Asiatiques, 70(2), 571–589. https://doi.org/10.1515/asia-2015-0045