What does agency cost mean?

Definitions for agency cost
agen·cy cost

Here are all the possible meanings and translations of the word agency cost.


  1. Agency cost

    An agency cost is an economic concept concerning the cost to a "principal", when the principal chooses or hires an "agent" to act on its behalf. Because the two parties have different interests and the agent has more information, the principal cannot directly ensure that its agent is always acting in its best interests. Common examples of this cost include that borne by shareholders, when corporate management buys other companies to expand its power, or spends money on wasteful pet projects, instead of maximizing the value of the corporation's worth; or by the voters of a politician's district when the politician passes legislation helpful to large contributors to their campaign rather than the voters. Though effects of agency cost are present in any agency relationship, the term is most used in business contexts.

How to pronounce agency cost?

  1. Alex
    US English

How to say agency cost in sign language?

  1. agencycost


  1. Chaldean Numerology

    The numerical value of agency cost in Chaldean Numerology is: 8

  2. Pythagorean Numerology

    The numerical value of agency cost in Pythagorean Numerology is: 4

Images & Illustrations of agency cost

  1. agency costagency costagency costagency costagency cost


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"agency cost." Definitions.net. STANDS4 LLC, 2020. Web. 11 Jul 2020. <https://www.definitions.net/definition/agency+cost>.

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