Economic Analysis of Agency Law – Episode 10: The Big Picture (Synthesizing Delegation and Trust)

In the final episode of our series on the economic analysis of agency law, Professor Seth C. Oranburg brings together all the insights from our journey. Reflecting on the whimsical yet instructive tale of Hotch Hotch, he recaps how delegation—while essential for progress—introduces challenges such as transaction costs, misaligned incentives, and conflicting interests. This episode reviews how tools like fiduciary duties, bonding, and effective monitoring work together to build trust and foster efficient agency relationships. Drawing on economic insights from scholars like Schumpeter, Knight, and Kirzner, Professor Oranburg demonstrates that agency law is not just a set of legal rules, but a dynamic framework for managing human behavior, uncertainty, and innovation. Tune in to explore the big picture of delegation, understand why continuous adaptation is vital, and discover how these principles apply in real-world settings—whether in the boardroom, on the job, or in everyday life.

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