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Probably so. At some point I won some maths-heavy economy textbooks in an undergraduate probability theory competition. It was last updated a few years before 2008 (I would guess no later than 2004), and it is mainstream enough to be a gift agreed upon by large-finance sponsors and financial-applied probability theory professors.

While explaining the market models, the book had quite a few footnotes that briefly mentioned incentive structures at different levels (individual traders, groups inside a company, mortgage-issuers that unload all of the risk…) Sometimes it stayed politically correct («it remains to be seen how this incentive structure will affect market stability»), sometimes not (especially when there were enough historical examples of exactly the same incentive structure leading to the same problems), but it made clear that principal-agent problems in the then-current (and now-current) economy are well-known and easy to describe in mainstream economics.




What book is that?




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