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Like most business-to-business relationships, the interaction between an advertising agency and a client includes both common and conflicting interests. In this paper, we argue that the inherent nature of the advertising agency-client relationship creates an environment where double moral hazard prevails. Historic and existing contractual arrangements only imperfectly reflect the complexity of the connection between client and agency. This paper provides: (1) an outline of current advertisingdoi:10.1300/j033v06n01_02 fatcat:ifkyyii6fza7foidkbmdk3y2om