One example of a principal-agent model that tends to be more like a triangle rather than the standard principal agent model would be recruiters and recruiting companies more generally. As the job market has continued to grow new sectors have arisen, more example the exposure of recruiters in the job marketing community. It is the role of the recruiter to find a suitable candidate for the company, and it is also the role of many recruiters, from recruiting companies, to help individuals find a placement. 

Two summers ago I interned at the JUF in Chicago in the Information Technology Department for the Chicago office. As a part of the interview process I engaged in a triangle principal-agent model. The first part of the application process included an online application. After filling out the application it was sent to the Lewis Summer Intern recruiter at the JUF. The Lewis Summer Intern program was the internship program I was in as an Information Technology Department Intern. The recruiter for the program then reviewed the applications, and scheduled in person interviews with candidates for the program. Following an initial interview with the recruiter, if she thought you were a good fit for the program she would give you a phone call and let you know her proceedings to find you a placement. From that point forward the recruiter was working to both find the applicant a placement, as well as working for the different departments and organization as whole to fill the intern spots that needed to be filled. 

Comments

  1. Professor ArvanNovember 30, 2019 at 10:23 AM

    So, there may be a conceptual problem with what you wrote. If the interests of the two principals are aligned, there is no triangle problem. In this case the agent is simply doing the job. That there are multiple beneficiaries, all the better. In this case, the triangle problem would be evident if some departments would prefer certain candidates as would the Lewis Summer program, and the recruiter continued to assign the preferred candidates to one of these units before filling the slots in other units. If that was happening, you should have written about it. Otherwise, there isn't any tension between the principals.

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