The agency problem leads an individual (in your case) and
corporate managers (in the corporate setting) to put their own
self-interest ahead of the interests of the shareholders (your
parents in your case).
In both situations there may be a lack of interest in controlling costs if those costs are not borne directly by the person making the decision.
When you would be payina bill you will order less food and when your parents paying the bill you may order more food because parents are paying for that. Same way in organisation the manager just take decisions all the costs are ultimately borne by Share-holders manager may spend more(like we order more food when we are not paying).
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