STUDY ON TEAM OPTIMAL CONTRACT BY PRINCIPAL-AGENT MODEL

摘要

This paper discusses the team optimal contract by principal-agent theory. It first describes the "shirking" problem of team production and the contractual arrangement for the agents designed by Holmstrom's incentive mechanism model, and then presents an improved incentive mechanism model for describing the "Free Rider "problem. Finally, it gives the proof of correctness and analysis of reasonableness , and verifies its availability of pareto dominance and nash equilibrium and efficiency by illustrating an example.