Research on the Incentive Compensation of Agent Based on Principal-agent Theory

摘要

The agent service charging method has become a controversial topic nowadays. Therefore applying the principal-agent theory to design an optimum incentive and restraint mechanism can benefit not only the principal in that it reduces the risks resulting from the asymmetric information and can allocate the project ownership rationally to alleviate the conflicts of interests and reduce the differences in pursuing their goals for both parties, but also maximizes both the agent and the principal benefits.