5 The Principal-Agent Problem (委托代理问题) Moral hazard also arises in a principal-agent problem, where one party,called an agent,acts on behalf of another party,called the principal.◼ Moral hazard also arises in a principal-agent problem, where one party, called an agent, acts on behalf of another party, called the principal. 5 The Principal-Agent Problem (委托代理问题）