“We define an agency relationship as a contract under which one or more persons (the principal(s)) engage another person (the agent) to perform some service on their behalf which involves delegating some decision making authority to the agent. If both parties to the relationship are utility maximizers there is good reason to believe that the agent will not always act in the best interests of the principal.”

— Michael Jensen

Source: "Theory of the firm: Managerial behavior, agency costs and ownership structure", 1976, p. 308

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Michael Jensen 8

American economist 1939

Stephen A. Ross

Stephen A. Ross "The Economic Theory of Agency: The Principal's Problem," Amer. Econom. Rev., 63 (1973), 134-139; As cited in Eisenhardt (1985, 136)

“We define agency costs as the sum of:
(1) the monitoring expenditures by the principal,
(2) the bonding expenditures by the agent,
(3) the residual loss.
Note also that agency costs arise in any situation involving cooperative effort… by two or more people even though there is no clear cut principal-agent relationship.”

Michael Jensen (1939) American economist

Source: "Theory of the firm: Managerial behavior, agency costs and ownership structure", 1976, p. 308-9

“An agent is usually held accountable to his principals.”

Voltairine de Cleyre (1866–1912) American anarchist writer and feminist

The Economic Tendency of Freethought (1890)
Context: An agent is usually held accountable to his principals. If you do not know the individuals who voted for you, then you do not know for whom you are acting, nor to whom you are accountable. If any body of persons has delegated to you any authority, the disposal of any right or part of a right (supposing a right to be transferable), you must have received it from the individuals composing that body; and you must have some means of learning who those individuals are, or you cannot know for whom you act, and you are utterly irresponsible as an agent.

“There seems to be no agent more effective than another person in bringing a world for oneself alive, or, by a glance, a gesture, or a remark, shriveling up the reality in which one is lodged.”

Erving Goffman (1922–1982) Sociologist, writer, academic

Erving Goffman (1971), Encounters: Two Studies in the Sociology of Interaction, p. 38; As quoted by R. D. Laing in The Politics of Experience
1970s-1980s

“I detest life-insurance agents: they always argue that I shall some day die, which is not so.”

Stephen Leacock Literary Lapses

Insurance up to Date
Literary Lapses (1910)

“The motivation for me as an activist is the belief that no one is subordinate to another. The government is merely an agent of the people. We lend authority to it, and when it performs badly, we reserve the right to take it back.”

Glacier Kwong (1996) Hong Kong human rights activist

Hong Kong’s angry young millennials: an interview with Joshua Wong https://www.opendemocracy.net/en/hong-kong-angry-young-millennials-interview-with-joshua-wong/ (1 November 2015)