The Application of Game Theory to the Industrial Management
Hou Yun-xian · Application of Statistics and Management · 2000
Game theory is applicated on industrial management in this paper ,a principal-agent incentive model is set up. Analyses symmetric information and asymmetric information.As a principal-agent mechanism is desiged,if incentive for manager in a enterprise is considered then risk costs、agential costs of principal are smaller than incentive for manager in a enterprise if not considered.The article has proved in theory that incentive for manager in a enterprise is necessary and provided a theory basis for annual salary system of enterpriser.