3min chapter

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#547: Balaji Srinivasan — Centralized China vs Decentralized World, The DeFi Matrix, Ascending vs Descending Trends, Bitcoin Mining as Energy Storage, Reputational Civil War, and Maximalism vs. Optimalism

The Tim Ferriss Show

CHAPTER

The Principal Agent Problem

The principal agent problem is a fundamental thing of every single relationship on an org chart. When you've got two human beings, their interests never fully coincide. Push hard enough and there's often a divergence in incentives. The key is to try to diagonalize this as much as possible so that the win win and lose lose are optimal.

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