Agency Theory Explantion.

Agency Theory is a very academic term. Essentially it involves the costs of resolving conflicts between the principals and agents and aligning interests of the two groups. It is the branch of financial economics that looks at conflicts of interest between people with different interests in the same assets.

Milgram

The agency theory says that a free act is an act that is caused by an agent. An agent is any person who has a knowledge. In addition, all events has causes and the cause is made by the agent. The theory also agrees with Principle of Universal Casuality, since it says that everything that happens, has a cause, but something that does not have a long casual chain of history.


This is related to the experiment because in the experiment, 40 different men are given questions and a control system to ask another person in another room. If they answer it incorrect, then the person is shocked, and for each wrong answer you get shocked harder. Then the people in charge start to slow down because they feel that it is wrong but the master says to continue. But really, there are no people getting shocked in the next room. This shows that the men are free to act and they can choose if they want to continue or not but there is always going to be a supervisor or an agent and they really make the choices.

Cost-Benefit Analysis

1.  I am happy to go to school because i can meet my friends and teathers at school. Other people are also happy to see their friends and teachers too. So we both can get the benefits.

2.  For the utilitarians, they will do everything in order to fulfill their desires. I think that sometimes, It is difficult for the utilitarians to get what they really want because other people would not want to pursue their requirements.

     So, the utilitarians would not get what they want because it would be contradicted to the other people's thoughts. On the other hand, for some situations, the utilitarians would be able to get what they want by doing something inevitable in order to make the victims surrender.

Truman

The first thing that i can see in the movie Truman is that people love him and help him. And it is fake.
The second thing that is fake is everybody knows Truman. They always say" Hi Truman" all the time.
The third thing is that there are cameras stalking him all the time. It shows his life. Lastly, if those things happen in my life. I would be confused with the world because normally i am a normal person. Everything is normal like the other people.