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Item Details
Title:
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FORMULATING PRINCIPAL-AGENT SERVICE CONTRACTS FOR A REVENUE GENERATING UNIT
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By: |
Shuo Zeng, Moshe Dror |
Format: |
Paperback |
List price:
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£44.99 |
We currently do not stock this item, please contact the publisher directly for
further information.
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ISBN 10: |
331918671X |
ISBN 13: |
9783319186719 |
Publisher: |
SPRINGER INTERNATIONAL PUBLISHING AG |
Pub. date: |
4 July, 2015 |
Edition: |
2016 ed. |
Series: |
SpringerBriefs in Operations Management |
Pages: |
129 |
Synopsis: |
This book examines contractual options for a performance based contract between an owner of a revenue generating unit and a repair agent for such unit. The framework of the analysis is that of economists' principal-agent problem. The contractual options of a principal and an agent are modeled as a Markov process with an undetermined time horizon. For a risk neutral principal, the authors identify the conditions under which a principal contracts with a risk-neutral, risk-averse, or risk-seeking agent and derive the principal's optimal offer together with the agent's optimal service capacity response. In essence, the book provides an extensive formulating analysis of principal-agent contracts given any exogenous parameter values. Ultimately a small number of formulas cover a large spectrum of principal-agent conditions. |
Illustrations: |
4 Tables, black and white; 37 Illustrations, black and white; IX, 129 p. 37 |
Publication: |
Switzerland |
Imprint: |
Springer International Publishing AG |
Returns: |
Returnable |
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