Based on the following paragraph, answer the question that follows it.
“In this model, one person, M, wants to induce another person, N to take some action which is costly to N. It is given that M may be unable to directly observe the action of N, but instead observes some output, x, that is determined, at least in part, by actions of N.”
Which of the following statements best describes the model given in the paragraph above?
Tap an option to check your answer.