Yet these very factors that drive principals into agency relationships also offer opportunities for agent abuse (Clark 1985, p. 77). Trusted individual and organizational agents control property they do not own. They have the capacity to create wealth and discretion over the distribution of opportunity. Agents create and disseminate information that cannot be verified by its recipients because of their lack of expertise or access to data sources (Arrow 1985, pp. 38-39). Agents structure futures trans-

QUESTION: What institutional mechanisms constrain this abuse without excessive control costs? Worth exploring how governance structures emerge to mitigate the discretion gap.

Shapiro, Susan P., The Social Control of Imper…, loc. 33