Ballast takes many forms. The simplest form of ballast used in small day sailers is so-called live ballast, or the weight of the crew. By sitting on the windward side of the hull, the heeling moment must lift the weight of the crew.
The Principal-Agent Relationship. A principal-agent relationship is an arrangement between two or more individuals. Specifically, the agent of the relationship performs a task on behalf of the principal. This is often due to different degrees of knowledge and skills.
A Principal-Agent problem refers to any set of problems where one person, the principal, hires another, the agent, to do something. In the economics literature, principal-agent problems usually assume that each person pursues their own self-interest and the agent knows stuff that the principal doesn't (asymmetric information). Moral Hazard describes situations where being protected from the consequences of a risky behaviour leads an agent to do more of it. Examples: