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September 29, 2025

Principal-Agent Dynamics and Digital (Platform) Economics in the Age of Agentic AI

This article applies the principal–agent framework to the use of autonomous AI systems in digital markets. It examines the challenge of aligning AI agents with the interests of end-users, given that many systems may also reflect the objectives of developers, platform providers, or advertisers. These “shadow principals” create persistent information asymmetries and reduce user control....
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