Parameterized Model Design and Extension for Principal-Agent Incentive Mechanism

Abstract:

Article Preview

Parameterized model of principal-agent incentive mechanism has been designed through mathematical analysis in this paper. The analysis of monitoring mechanism is introduced in the principal-agent incentive mechanism, which extends the theoretical framework of incentives. The results show that: monitoring mechanisms and incentive mechanisms are relevant and the interaction between them has a substitution effect. They can encourage or induce an agent to work hard. Therefore, incentive mechanisms and monitoring mechanisms should be taken into account in the process of compensation contract formation. The introduction of monitoring mechanisms not only has some innovations in theory, but also has great value in practice.

Info:

Periodical:

Edited by:

Qi Luo

Pages:

1869-1874

DOI:

10.4028/www.scientific.net/AMM.55-57.1869

Citation:

J. Chen et al., "Parameterized Model Design and Extension for Principal-Agent Incentive Mechanism", Applied Mechanics and Materials, Vols. 55-57, pp. 1869-1874, 2011

Online since:

May 2011

Export:

Price:

$35.00

In order to see related information, you need to Login.

In order to see related information, you need to Login.