The supply chain contract based on the discrete principal agent model

摘要

The principal-agent models are useful to study the problem with asymmetrical information in economics, management, and society. The paper has an analysis on the supply chain contract based on the discrete principal agent model, which is reformulated as a stochastic bilevel programming problem. According to Karush-Kuhn-Tucker theorem, we find all the solutions and propose the condition of the existence of the optimal contract. The research results will contribute to the field of both supply chain coordination and principal-agent theory.