[BobbyH]

Yeah, I agree. What I was trying to articulate is that this is a good example of a principal/agent problem, as the Principal (owner) has interests that differ from those of his Agent. Solutions to this generally either decrease information asymmetry or involve a better incentive system for the Agent. However, as you point out, it's possible that the Agent will act in his interest and still benefit the Principal.

Wow, I just looked and this exact example is actually featured on the Wikipedia page for Principle-agent problem. http://en.wikipedia.org/wiki/Principal-agent_problem#Employm...