Model Analysis on a Kind of Polyperiod Principal-Agent Relation

Xian Yu WANG;Sheng ZHONG;Kang LI

Systems Engineering - Theory & Practice ›› 2001, Vol. 21 ›› Issue (11) : 31-36.

PDF(189 KB)
PDF(189 KB)
Systems Engineering - Theory & Practice ›› 2001, Vol. 21 ›› Issue (11) : 31-36. DOI: 10.12011/1000-6788(2001)11-31
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Model Analysis on a Kind of Polyperiod Principal-Agent Relation

  • Xian Yu WANG,Sheng ZHONG,Kang LI
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Abstract

Capital, labour and technology are three key elements of enterprise production. This paper discusses the polyperiod principal-agent relation of enterprise on the base that principal possess capital while agent carry on labour. We establish dynamic programming model of principal-agent relation, analyse rational behavior and profit character of principal and agent, and obtain the result that the expect investment marginal profit of principal is very important.

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principal-agent thoery / dynamic programming / investment / expect investment marginal profit

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Xian Yu WANG , Sheng ZHONG , Kang LI. Model Analysis on a Kind of Polyperiod Principal-Agent Relation. Systems Engineering - Theory & Practice, 2001, 21(11): 31-36 https://doi.org/10.12011/1000-6788(2001)11-31
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