Alternative Method to Resolve the Principal–Principal Conflict—A New Perspective Based on Contract Theory and Negotiation
Article
Article Title | Alternative Method to Resolve the Principal–Principal Conflict—A New Perspective Based on Contract Theory and Negotiation |
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ERA Journal ID | 213646 |
Article Category | Article |
Authors | Zhou, Yuxun, Rahman, Mohammad Mafizur, Khanam, Rasheda and Taylor, Brad R. |
Journal Title | Mathematics |
Journal Citation | 11 (2), pp. 1-31 |
Article Number | 442 |
Number of Pages | 31 |
Year | 2023 |
Publisher | MDPI AG |
Place of Publication | Switzerland |
ISSN | 2227-7390 |
Digital Object Identifier (DOI) | https://doi.org/10.3390/math11020442 |
Web Address (URL) | https://www.mdpi.com/2227-7390/11/2/442 |
Abstract | Liquidated damages mechanisms have been analyzed from a legal perspective and applied to real-world contracts. Due to the lack of application of LDs to common agency theory, this research explores whether the liquidated damages mechanism can resolve principal–principal conflicts under common agency. We combine the moral hazard model of common agency with non-cooperative dynamic game theory to analyze the influence of the liquidated damages mechanism on the agent and principals under the condition of complete information and incomplete information. We find that liquidated damages are the key factors affecting the optimal contract between |
Keywords | liquidated damages; bargaining game; common agency; principal–principal conflicts |
Related Output | |
Is part of | Emergency public health management: a game theoretic analysis |
ANZSRC Field of Research 2020 | 380303. Mathematical economics |
490108. Operations research | |
490199. Applied mathematics not elsewhere classified | |
Public Notes | This article is part of a UniSQ Thesis by publication. See Related Output. |
Byline Affiliations | School of Business |
https://research.usq.edu.au/item/v85q5/alternative-method-to-resolve-the-principal-principal-conflict-a-new-perspective-based-on-contract-theory-and-negotiation
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