The research paper analyzes the first decade of the relationship between Iran and Hizbullah, one of the world’s most notable proxy relationships. By applying principal-agent theory to this...Show moreThe research paper analyzes the first decade of the relationship between Iran and Hizbullah, one of the world’s most notable proxy relationships. By applying principal-agent theory to this relationship, the study seeks to illustrate the mechanisms which state actors employ to ensure that their non-state agents do not endanger their strategic objectives. Concretely, it is argued that state actors have three distinct mechanisms at their disposal which work to mitigate their proxies’ harmful behaviors. States can mitigate shirking behavior 1) by building monitoring and reporting structures that reduce information asymmetry, 2) by modifying the proxy’s scope of authority, and 3) by offering incentives or 5 levying sanctions on the proxy based on its activities and behavior. As such, the paper provides insights that serve the international community and security policymakers by illustrating potential avenues for undercutting the relationship between malign state actors and their non-state agents. Moreover, understanding the early decades of the relationship between the Iranian administration and Hizbullah may be crucial to comprehending Hizbullah’s current position within Lebanon as well as its linkages with Iran.Show less
