Michael Jensen (Economist)

Michael Jensen is an influential American economist known for his work in finance and management. He is best recognized for his contributions to the theory of agency costs, which examines the conflicts that arise when one party (the agent) makes decisions on behalf of another (the principal). This work has important implications for corporate governance and organizational behavior. Jensen also co-authored the landmark paper on the efficient market hypothesis, which suggests that asset prices reflect all available information. His research has significantly shaped modern finance, emphasizing the importance of aligning incentives in businesses.