THE AGENCY PROBLEM IN NEW INSTITUTIONAL ECONOMICS

The aim of the paper is to set the agency problem into a broad context of New Institutional Economics with an emphasis on historical connections In the first section, I explain the historical evolution of basic theoretical concepts like the theory of firm, the theory of market process and the theory of property rights The second section is dedicated to the explanation of the general concept of agency problem extended with the problem of asymmetric information leading to adverse selection and the problem of moral hazard, in context of previous historical connections In the last section, the author provides some suggestions for the further theoretical and empirical research.