Title :
Research on target cost incentive pricing based on principal-agent theory
Author :
Liu, Hai-Tao ; Wei, Ru-xiang
Author_Institution :
Dept. of Equip. Econ. & Manage., Naval Univ. of Eng., Wuhan, China
Abstract :
Aiming at the pricing of military software acquisition, principal-agent relationship of the acquisition is analyzed. Using the principal-agent theory, target cost incentive pricing models under symmetric information and asymmetric information are given. The contract parameters are determined through model optimizing. Finally a calculation of a practical problem is illustrated and impacts of parameters´ variety are analyzed.
Keywords :
pricing; asymmetric information; contract parameter; military software acquisition; model optimization; principal agent theory; symmetric information; target cost incentive pricing; Computational modeling; Computers; asymmetric information; incentive pricing; principal-agent; symmetric information; target cost;
Conference_Titel :
Future Information Technology and Management Engineering (FITME), 2010 International Conference on
Conference_Location :
Changzhou
Print_ISBN :
978-1-4244-9087-5
DOI :
10.1109/FITME.2010.5655602
