Title :
The Incentive Mechanism of Outsourcing for the Service Vendor: Based on Reputation Effect
Author :
Tan Yunqing ; Li Yuanxu
Author_Institution :
Sch. of Bus., Shanghai Lixin Univ. of Commerce, Shanghai, China
Abstract :
The paper establishes and solves a game model with incomplete information between the client and the service vendor. On the basis of reputation concerns, the inner mechanism of outsourcing for the service vendor was discussed. It is shown that the reputation effect can improve the service vendor´s effort level and solve the moral hazard in some extent.
Keywords :
game theory; human factors; incentive schemes; outsourcing; game model; moral hazard; outsourcing incentive mechanism; reputation effect; service vendor; Biological system modeling; Contracts; Economics; Games; Industries; Outsourcing;
Conference_Titel :
E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on
Conference_Location :
Henan
Print_ISBN :
978-1-4244-7159-1
DOI :
10.1109/ICEEE.2010.5660127