The Distributed Decision making risk management model for virtual enterprise based on principal-agent theory

The virtual enterprise must avoid risks successfully for the desired goal. When the leader and partners of virtual enterprise are in relation non-team and may exploit their information in an opportunistic way, in order to ensure virtual enterprise risk management carried out smoothly, the leader must develop effective risk control mechanism. The principal-agent theory and Distributed Decision-making (DDM) method are applied to solve the risk management of virtual enterprise with principal-agent characteristic and the principal-agent DDM risk management model of virtual enterprise is developed with one principal and multi-agent, analysis of the risk preference impact on decision-making. At the same time, discusses the solution to the model, and the method of combining with the C language and the Lingo is used to do the simulation.