Title :
Research on Incentive Mechanism Based on Inter-Temporal Choice Theory
Author :
Lu Yang ; Zhuang Xintian
Author_Institution :
Sch. of Bus. Adm., Northeastern Univ., Shenyang, China
Abstract :
Traditional incentive theory is built on the assumption of rational agents. In this paper, inter-temporal choice theory is introduced to reflect time preference of agents while they make decisions. For agents with dynamic inconsistency, dynamic gaming models are established under performance incentive and stock option incentive mechanisms. The results are different comparing to those of traditional incentive theory and provide a more realistic approach to study employment contract.
Keywords :
employment; game theory; incentive schemes; stock markets; dynamic gaming models; employment contract; incentive mechanism; intertemporal choice theory; rational agents; stock option; Biological system modeling; Economics; Integrated circuits; Mathematical model; Production; Remuneration;
Conference_Titel :
Management and Service Science (MASS), 2011 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-6579-8
DOI :
10.1109/ICMSS.2011.5998546
