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🔗 Economics 🔗 Business

The principal–agent problem, in political science, supply chain management and economics (also known as agency dilemma or the agency problem) occurs when one person or entity (the "agent"), is able to make decisions and/or take actions on behalf of, or that impact, another person or entity: the "principal". This dilemma exists in circumstances where agents are motivated to act in their own best interests, which are contrary to those of their principals, and is an example of moral hazard. Issues also arise when companies have an incentive to become increasingly deferential to management that have ownership stakes. As shareholders are dis-incentived to intervene, there are fewer checks on management. Issues can also arise among different types of management.

Common examples of this relationship include corporate management (agent) and shareholders (principal), elected officials (agent) and citizens (principal), or brokers (agent) and markets (buyers and sellers, principals). Consider a legal client (the principal) wondering whether their lawyer (the agent) is recommending protracted legal proceedings because it is truly necessary for the client's well-being, or because it will generate income for the lawyer. In fact the problem can arise in almost any context where one party is being paid by another to do something where the agent has a small or nonexistent share in the outcome, whether in formal employment or a negotiated deal such as paying for household jobs or car repairs.

The principal–agent problem typically arises where the two parties have different interests and asymmetric information (the agent having more information), such that the principal cannot directly ensure that the agent is always acting in their (the principal's) best interest, particularly when activities that are useful to the principal are costly to the agent, and where elements of what the agent does are costly for the principal to observe (see moral hazard and conflict of interest). Often, the principal may be sufficiently concerned at the possibility of being exploited by the agent that they choose not to enter into the transaction at all, when it would have been mutually beneficial: a suboptimal outcome that can lower welfare overall. The deviation from the principal's interest by the agent is called "agency costs".

The agency problem can be intensified when an agent acts on behalf of multiple principals (see multiple principal problem). When one agent acts on behalf of multiple principals, the multiple principals have to agree on the agent's objectives, but face a collective action problem in governance, as individual principals may lobby the agent or otherwise act in their individual interests rather than in the collective interest of all principals. As a result, there may be free-riding in steering and monitoring, duplicate steering and monitoring, or conflict between principals, all leading to high autonomy for the agent. The multiple principal problem is particularly serious in the public sector, where multiple principals are common and both efficiency and democratic accountability are undermined in the absence of salient governance. This problem may occur, for example, in the governance of the executive power, ministries, agencies, intermunicipal cooperation, public-private partnerships, and firms with multiple shareholders.

The relationships between investment managers and corporate management is an especially common example of the principal–agent relationship. There are several drivers of agency problems that affect investment managers of index funds and mutual funds include. First, investment managers receive a fraction of the benefits resulting from stewardship activities while having to handle all the costs. competition among investment managers is can also contribute to agency problems.And, lastly, another driver of agency problems is that investment managers can be heavily influenced by private incentives provided by the managers of corporations.

Various mechanisms may be used to align the interests of the agent with those of the principal. In employment, employers (principal) may use piece rates/commissions, profit sharing, efficiency wages, performance measurement (including financial statements), the agent posting a bond, or the threat of termination of employment to align worker interests with their own.

🔗 Germany 🔗 Measurement

The obsolete units of measurement of German-speaking countries consist of a variety of units, with varying local standard definitions. Some of these units are still used in everyday speech and even in stores and on street markets as shorthand for similar amounts in the metric system. For example, some customers ask for one pound (ein Pfund) of something when they want 500 grams.

The metric system became compulsory on 1 January 1872, in Germany and on 1 January 1876, in Austria.

Some obsolete German units have names similar to units that were traditionally used in other countries, and that are still used in the United Kingdom (imperial units) and the United States (United States customary units).

🔗 International relations 🔗 Espionage 🔗 Soviet Union 🔗 Russia 🔗 Russia/history of Russia 🔗 English Language

In political jargon, a useful idiot is a derogatory term for a person perceived as propagandizing for a cause without fully comprehending the cause's goals, and who is cynically used by the cause's leaders. The term was originally used during the Cold War to describe non-communists regarded as susceptible to communist propaganda and manipulation. The term has often been attributed to Vladimir Lenin, but this attribution is unsubstantiated.

🔗 Mathematics 🔗 Archaeology

The Ishango bone is a bone tool and possible mathematical object, dated to the Upper Paleolithic era. It is a dark brown length of bone, the fibula of a baboon, with a sharp piece of quartz affixed to one end, perhaps for engraving. It is thought by some to be a tally stick, as it has a series of what has been interpreted as tally marks carved in three columns running the length of the tool, though it has also been suggested that the scratches might have been to create a better grip on the handle or for some other non-mathematical reason. Others argue that the marks on the object are non-random and that it was likely a kind of counting tool and used to perform simple mathematical procedures.

🔗 Computer Security 🔗 Computer Security/Computing

Zombie Zero is an attack vector where a cyber attacker utilized malware that was clandestinely embedded in new barcode readers which were manufactured overseas.

It remains unknown if this attack was promulgated by organized crime or a nation state. Clearly there was significant planning and investment in order to design the malware, and then embed it into the hardware within the barcode scanner. Internet of things (IoT) devices may be similarly preinstalled with malware that can capture the network passwords and then open a backdoor to attackers. Given the high volume of these devices manufactured overseas high caution is to be exercised before placing these devices on corporate or government networks.

🔗 Computing 🔗 Books

EPUB is an e-book file format that uses the ".epub" file extension. The term is short for electronic publication and is sometimes styled ePub. EPUB is supported by many e-readers, and compatible software is available for most smartphones, tablets, and computers. EPUB is a technical standard published by the International Digital Publishing Forum (IDPF). It became an official standard of the IDPF in September 2007, superseding the older Open eBook standard.

The Book Industry Study Group endorses EPUB 3 as the format of choice for packaging content and has stated that the global book publishing industry should rally around a single standard. The EPUB format is implemented as an archive file consisting of XHTML files carrying the content, along with images and other supporting files. EPUB is the most widely supported vendor-independent XML-based (as opposed to PDF) e-book format; that is, it is supported by almost all hardware readers, except for Kindle.

🔗 Classical Greece and Rome 🔗 Board and table games

Ludus latrunculorum, latrunculi, or simply latrones (“the game of brigands”, from latrunculus, diminutive of latro, mercenary or highwayman) was a two-player strategy board game played throughout the Roman Empire. It is said to resemble chess or draughts, but is generally accepted to be a game of military tactics. Because of the scarcity of sources, reconstruction of the game's rules and basic structure is difficult, and therefore there are multiple interpretations of the available evidence.

🔗 Mathematics 🔗 Statistics

In mathematics, the theory of optimal stopping or early stopping is concerned with the problem of choosing a time to take a particular action, in order to maximise an expected reward or minimise an expected cost. Optimal stopping problems can be found in areas of statistics, economics, and mathematical finance (related to the pricing of American options). A key example of an optimal stopping problem is the secretary problem. Optimal stopping problems can often be written in the form of a Bellman equation, and are therefore often solved using dynamic programming.

🔗 Economics 🔗 New York City

The National Debt Clock is a billboard-sized running total display which constantly updates to show the current United States gross national debt and each American family's share of the debt. It is currently installed on the western side of One Bryant Park, west of Sixth Avenue between 42nd and 43rd Streets in Manhattan, New York City. It was the first debt clock installed anywhere.

The idea for the clock came from New York real estate developer Seymour Durst, who wanted to highlight the rising national debt. In 1989, he sponsored the installation of the first clock, which was originally placed on Sixth Avenue between 42nd and 43rd Streets, one block away from Times Square. In 2004, the original clock was dismantled and replaced by a newer clock near 44th Street and Sixth Avenue. In 2008, as the U.S. national debt exceeded $10 trillion for the first time, it was reported that the value of the debt may have exceeded the number of digits in the clock. The lit dollar-sign in the clock's leftmost digit position was later changed to the "1" digit to represent the ten-trillionth place. In 2017, the clock was moved again to One Bryant Park, near its original location.

🔗 Philosophy 🔗 Skepticism

The motte-and-bailey fallacy (named after the motte-and-bailey castle) is a form of argument and an informal fallacy where an arguer conflates two positions which share similarities, one modest and easy to defend (the "motte") and one much more controversial (the "bailey"). The arguer advances the controversial position, but when challenged, they insist that they are only advancing the more modest position. Upon retreating to the motte, the arguer can claim that the bailey has not been refuted (because the critic refused to attack the motte) or that the critic is unreasonable (by equating an attack on the bailey with an attack on the motte).