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Information asymmetry and the tendency of the rational individuals to pursue self-interest birth a need for complex contracts and compensation packages. Do you agree? Explain.

Information asymmetry and the tendency of the rational individuals to pursue self-interest birth a need for complex contracts and compensation packages." Do you agree? Explain. 


Explain what a boundary Control System is and provide real world examples.


Consider diners, restaurant owners, and servers. Identify two principal-agent relationships that exist among these parties. For each relationship, clearly present the agent and the principal and state the possible contract agreement (contract can be explicit or implicit).

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