Castrated slaves, called eunuchs, were employed by Sultans to guard their harems. This solution to a particularly distressing principal-agent problem is one instance of a general strategy that can be called choosing agents.What the application of this is to politics I'm not sure. The paper seems to conclude (as others have ) that eliminating the temptation to use public office for personal gain is a particularly intractable problem. But the lead does make you wonder what might happen if, say, politicians were prohibited from appearing on television.
Wednesday, May 20, 2009
Extreme Problems Call For Extreme Solutions
The most striking lead I've read recently--actually, ever--in an economics treatise. From a paper that examines the "principal-agent" problem in cases of political corruption: