The Study on Supervision Institution Incentive System Based on Asymmetric Information

Cao Yugui1、 Yang Zhongzhi2

Strategic Study of CAE ›› 2005, Vol. 7 ›› Issue (10) : 69-72.

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Strategic Study of CAE ›› 2005, Vol. 7 ›› Issue (10) : 69-72.
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The Study on Supervision Institution Incentive System Based on Asymmetric Information

  • Cao Yugui1、 Yang Zhongzhi2

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Abstract

The principal-agent model between employers and engineering supervisors is established, considering such factors as the scale of employers’ investment, special character of engineering supervision and exogenous random variable and its influence. And the influence of these factors on the sensitiveness of compensation performance under asymmetric information is analyzed. Based on the result, factors to be considered while establishing the incentive system of engineering supervision are put forward.

Keywords

employer / engineering supervision / principal-agent / incentive system

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Cao Yugui,Yang Zhongzhi. The Study on Supervision Institution Incentive System Based on Asymmetric Information. Strategic Study of CAE, 2005, 7(10): 69‒72
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