Economy
The principal-agent problem gives mechanics more information than drivers
HERE’S THE INTERESTING PART
The principal-agent problem perfectly describes the sheer terror of taking your vehicle to a repair shop. You, the clueless driver, just want the cheapest fix. The mechanic, armed with vast specialized knowledge, benefits from diagnosing imaginary engine failures. Aligning their incentives with your wallet is practically an impossible science.
One discovery leads to another.
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