Principal-Agent Tree:a Method of Industrial Organization Optimization Method

Yulong Ren · Ruan kexue · 2003

In the paper,the idea of″tree″being introduced,all kinds of relations have been simulated to be principal-agent in organization,and the industrial organization became a principal-agent tree to some extent;then a simple way is put forward to quantify the size of principal-agent tree.In order to reduce the size of the tree,the tree has been pruned so that the organization cost can be saved and organizational structure can be optimized.

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