Research Article

Modern-Day Proxy Warfare: From Agency Theory Perspective

Number: 78 October 25, 2023
TR EN

Modern-Day Proxy Warfare: From Agency Theory Perspective

Abstract

Proxy warfare, in which one party uses a third party to achieve its own goals, are known for centuries, however, the conceptualization studies of proxy warfare are relatively new. Thereby, in this paper, we assess proxy warfare in terms of agency theory. According to agency theory, the owner of the company delegates their authority to another person (agent) to make decisions on their behalf. If there is information asymmetry between the parties or differentiation in the goals of the principal and the agent or they have different risk-sharing perceptions, agency problem exists. This study discloses that identical problems are common in proxy warfare. That is, if the principal and proxy have unmatching goals or desires accompanying information asymmetry and different risk perceptions, the principal may lose control of the proxy or the principal may exploit the proxy, likewise, the proxy may prefer a different way of action which is not compatible with the goals of the principal. However, this study shows that the remedies for agency theory’s “moral hazard” and “adverse selection” problems might be used in proxy warfare problems by establishing outcome-based contracts and a strong knowledge structure between the parties of proxy warfare.

Keywords

Supporting Institution

Yoktur

Project Number

Yoktur

Thanks

Yoktur

References

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  4. Berle, A. & Means, G. (1932). The modern corporation and private property. New York: Macmillan.
  5. Brown, S. (2016). Purposes and pitfalls of war by proxy: A systemic analysis. Small Wars and Insurgencies, 27(2), 243-257.
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Details

Primary Language

English

Subjects

Behavioural Finance, Finance, Organisation and Management Theory

Journal Section

Research Article

Publication Date

October 25, 2023

Submission Date

June 15, 2023

Acceptance Date

September 28, 2023

Published in Issue

Year 2023 Number: 78

APA
Özdemir, L., & Kahraman, Ç. A. (2023). Modern-Day Proxy Warfare: From Agency Theory Perspective. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 78, 173-187. https://doi.org/10.51290/dpusbe.1314891
AMA
1.Özdemir L, Kahraman ÇA. Modern-Day Proxy Warfare: From Agency Theory Perspective. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2023;(78):173-187. doi:10.51290/dpusbe.1314891
Chicago
Özdemir, Levent, and Çağdaş Akif Kahraman. 2023. “Modern-Day Proxy Warfare: From Agency Theory Perspective”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, nos. 78: 173-87. https://doi.org/10.51290/dpusbe.1314891.
EndNote
Özdemir L, Kahraman ÇA (October 1, 2023) Modern-Day Proxy Warfare: From Agency Theory Perspective. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi 78 173–187.
IEEE
[1]L. Özdemir and Ç. A. Kahraman, “Modern-Day Proxy Warfare: From Agency Theory Perspective”, Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 78, pp. 173–187, Oct. 2023, doi: 10.51290/dpusbe.1314891.
ISNAD
Özdemir, Levent - Kahraman, Çağdaş Akif. “Modern-Day Proxy Warfare: From Agency Theory Perspective”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 78 (October 1, 2023): 173-187. https://doi.org/10.51290/dpusbe.1314891.
JAMA
1.Özdemir L, Kahraman ÇA. Modern-Day Proxy Warfare: From Agency Theory Perspective. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2023;:173–187.
MLA
Özdemir, Levent, and Çağdaş Akif Kahraman. “Modern-Day Proxy Warfare: From Agency Theory Perspective”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 78, Oct. 2023, pp. 173-87, doi:10.51290/dpusbe.1314891.
Vancouver
1.Levent Özdemir, Çağdaş Akif Kahraman. Modern-Day Proxy Warfare: From Agency Theory Perspective. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2023 Oct. 1;(78):173-87. doi:10.51290/dpusbe.1314891