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The labor market of top managers and directors is not a market in the ordinary sense. Instead of a perfect market with a large numbers of buyers and sellers engaged in relatively anonymous exchange, there is a small market in which buyers and sellers are few and socially connected. Instead of principals directly transacting with agents, there is a disconnect between the interest of principals (shareholders) and their agents (directors). Instead of a low-risk transaction in which all the necessary information is freely available and widely circulated, there is a significant lack of information...