Business, 27.03.2020 06:16 iamsecond235p318rq

A few years ago, the Boston Globe reported that the city of Boston planned to spend $14 million dollars to convert the FleetCenter sports arena and entertainment center into an appropriate venue for the Democratic National Convention. The city engaged Shawmut Design and Construction into a contractual relationship to complete the work, which was supposed to start 48 days prior to the commencement of the DNC on July 26th. However, when negotiations between the Boston's mayor office and the police union broke down, the Boston Police Patrolmen's Association took to the picket lines surrounding the FleetCenter and prevented construction crews from beginning the work. A truck attempting to deliver steel was forced to turn around by the picketing union members and on duty cops that were instructed to prevent pickets from restricting access, did not intervene. Given the tight construction schedule, construction delays cost about $100,000 per day. Identify the principal-agent problem in this situation

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