Michael C. Jensen Quotes

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Most organisations firms are simply legal fictions which serve as a nexus for a set of contracting relationships among individuals.

Michael C. Jensen

We define an agency relationship as a contract under which one or more persons (the principal(s)) engage another person (the agent) to perform some service on their behalf which involves delegating some decision making authority to the agent. If both parties to the relationship are utility maximizers there is good reason to believe that the agent will not always act in the best interests of the principal.

Michael C. Jensen

A major social problem we face today is how to control the political process that is eroding the free enterprise market system. Although I am pessimistic that we will in fact ever resolve this problem completely, we will surely never solve it unless we develop a viable positive theory of the political process. Such a political theory will not be complete until we also have developed a theory that explains why we get the results we do out of the mass media.

Michael C. Jensen

Michael C. Jensen

Michael C. Jensen

Born: November 30, 1939

Died: April 2, 2024 (aged 84)

Bio: Michael Cole "Mike" Jensen was an American economist who worked in the field of financial economics. From 1967-1988, he was on the University of Rochester's faculty.

Known for:

Foundations of organizational strategy (1998)
A Theory of the Firm (2000)
Ceo Pay And What to Do About It (2008)
Democracy in Crisis (1983)
Can the corporation survive? (1977)

Michael C. Jensen on Wikipedia

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