Live support chatPrincipal-Agency Issues and the Engineer-Manager
In Principal-Agency Issues and the Engineer-Manager, you'll learn ...
- Identify where the Principal-Agent problem exists
- Identify where and when moral hazards exist
- Define Utility Theory and marginal utility of individuals, corporations and governmental bodies
- Using marginal utilities as it applies to decision-making
Overview
Preview a portion of this course before purchasing it.
Credit: 2 PDH
Length: 34 pages
Agency theory applies to all aspects of the licensed professional engineer in describing that person’s motivation, their interaction with other engineers and other disciplines, and in dealing with external non-engineer decision makers such as political office-holders. The course applies centuries-old theories developed in economics and finance and behavioral sciences, which are still relevant today.
Applications of Agency Theory cover individual, managerial and employee work performances, partnering issues, and contract negotiations. Economic topics such as Moral Hazard, Utility Theory, Game Theory and Agency Theory will be described independently then interwoven into how professional behavior and management techniques utilize contracts to achieve mutually beneficial goals. Rarely does an engineering education include these topics yet Agency Theory is considered one of the most critical concepts in both personal and professional lives.
Specific Knowledge or Skill Obtained
This course teaches the following specific knowledge and skills:
- Identify where the Principal-Agent problem exists
- Identify where and when moral hazards exist
- Define Utility Theory and marginal utility of individuals, corporations and governmental bodies
- Using marginal utilities as it applies to decision-making
- Learn to develop First and Second Best Solutions
- Identify the differences between price and value
- Define asymmetric information and how to address contracts when asymmetric information is apparent
- Define survival bias and why some industries don’t act in the best interest of their customers
- How monitoring costs affect contract structure including contract enforcement
- Realize the total costs of the Principal-Agent problem for individuals, corporations and society at large
Certificate of Completion
You will be able to immediately print a certificate of completion after passing a multiple-choice quiz consisting of 25 questions. PDH credits are not awarded until the course is completed and quiz is passed.
| This course is applicable to professional engineers in: | ||
| Alabama (P.E.) | Alaska (P.E.) | Arkansas (P.E.) |
| Delaware (P.E.) | Florida (P.E. Other Topics) | Georgia (P.E.) |
| Idaho (P.E.) | Indiana (P.E.) | Iowa (P.E.) |
| Kansas (P.E.) | Kentucky (P.E.) | Louisiana (P.E.) |
| Maine (P.E.) | Michigan (P.E.) | Minnesota (P.E.) |
| Mississippi (P.E.) | Missouri (P.E.) | Montana (P.E.) |
| Nevada (P.E.) | New Hampshire (P.E.) | New Jersey (P.E.) |
| New Mexico (P.E.) | North Carolina (P.E.) | North Dakota (P.E.) |
| Ohio (P.E. Self-Paced) | Oklahoma (P.E.) | Oregon (P.E.) |
| Pennsylvania (P.E.) | South Carolina (P.E.) | South Dakota (P.E.) |
| Tennessee (P.E.) | Texas (P.E.) | Utah (P.E.) |
| Vermont (P.E.) | Virginia (P.E.) | West Virginia (P.E.) |
| Wisconsin (P.E.) | Wyoming (P.E.) | |
Preview a portion of this course before purchasing it.
Credit: 2 PDH
Length: 34 pages
