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Discuss the Dark Side of Representative Democracy in Terms of Principal-Agent

question 53

Essay

Discuss the dark side of representative democracy in terms of principal-agent problems and transaction costs.


Definitions:

Bargaining Environment

The setting, conditions, and circumstances that influence the dynamics and outcomes of negotiation processes.

Omission

The act of leaving out or excluding something, either intentionally or accidentally.

Conflicts

Disagreements or disputes between parties, typically arising from differing interests or opinions.

Competitive

Characterized by rivalry, where individuals or groups vie to outperform each other to achieve a goal.

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