The Theory of Agency : The Fiduciary Norm

The fiduciary norm, which prescribes agent behavior solely for the goal of the principal, without regard for other goals, is defined in the context of the theory of agency. The fiduciary program, a set of procedures for determining the principal's preferences and acting for them, is then defined and discussed. Two consequences of the fiduciary norm, a tendency toward maximization, and a fiduciary paradox, are analyzed. The general choice situation of agency is examined, with identification of the fiduciary function from which the agent selects returns to himself and his principal, and types of lexicographic agents, notably the lexical fiduciary