• International conference on construction engineering and project management
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• 2009.05a
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• pp.1474-1478
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• 2009

The cooperation and trust among the project participants play a critical role in the success or failure of any delivery system in construction industry. But it is very difficult to establish trust between an owner and a contractor when rational people only pursue only their own material self-interest. Based on the principal-agent theory, this paper will introduce the altruistic behavior into the traditional principal-agent model, and model the reciprocal behavior between the owner and contractor. We will show that both the owner and the contractor benefit from their reciprocal behavior, and hence trust establishing between them is possible. More importantly, we will proof that the higher the project uncertainty is, the more important trust establishing is.

• Environmental Engineering Research
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• v.19 no.4
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• pp.369-373
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• 2014

In view of the problem of the invalidity of the incentive mechanism of the ecological subsidies, which is due to the information asymmetry between the government's supervision and the enterprise endeavor to fulfill their ecological responsibilities, this paper attempts to analyze the supervision of ecological subsidies based on the Principal-agent Model. Two conclusions are drawn: firstly, the government's supervision regarding the effect of the enterprises' fulfilling the ecological responsibilities can significantly reduce the information asymmetry; secondly, the government's incentive strength and the enterprises' endeavor level of fulfilling the ecological responsibilities are both improving the surveillance dynamics. Here is the suggestion: with the increasing of the surveillance dynamics of the government and the transparency of the enterprises' fulfilling the ecological responsibilities, the government should meanwhile increase the subsidies incentive strength, therefore, to promote the effort level of the enterprises' fulfilling the ecological responsibilities to approach to the Pareto optimal value.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.1
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• pp.69-84
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• 2011

In this study, based on the principal-agent paradigm, we investigate a joint cost reduction activity in a buyer-supplier supply chain where a buyer motivates its operations department and a supplier to reduce the supply chain's production cost. We construct a benefit-sharing model based on the target cost scheme, a basic philosophy in practice which has not been explored in previous studies. The model also incorporates various supply chain issues such as the cooperation of multiple agents, the opportunity loss, and the degree of strategic relationship between the buyer and the supplier. Based on the analysis of the principal-agent model, we investigate the benefit-sharing rule to control agents' actions, and we also provide important managerial implications into supply chain practices via extensive comparative static analyses.

• International Commerce and Information Review
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• v.11 no.3
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• pp.363-390
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• 2009

This study investigates the role of private participation in FTA Negotiation in case of US, Mexico and Japan. We utilize Putnam(1988)'s two stage negotiation model, Schelling Conjecture and Principal-Agent(P-A) theory to understand the role of private sector in FTA Negotiation. Those theories are useful to understand the behavior and interaction of key players such as private sector, congress and government in FTA negotiation. Putnam(1988)'s two stage negotiation model divides the FTA negotiation process into two processes: the external negotiation with foreign country and domestic negotiation with domestic interest group. Principal-Agent(P-A) theory provides the theoretical foundation of Putnam's two stage negotiation model, which is that principal's interest is not identical to the interest of Agent. We showed that the private sector and congress play an important role in FTA negotiation in United States. In case of Mexico, the private sector and government occupy the dominant position in FTA negotiation. In particular, the cooperation of industry and government has been successfully established via COECE in Mexico. In contrast to these countries, the role of private participation in trade policy is relatively low in Japan and Korea.

• Journal of Digital Convergence
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• v.18 no.6
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• pp.17-32
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• 2020

This study analyzes the regulatory issues of stakeholders, the firm, the government, and the individual, in the data industry using the principal-agent theory. While the importance of data driven economy is increasing rapidly, policy regulations and restrictions to use data impede the growth of data industry. We applied descriptive case analysis methodology using principal-agent theory. From our analysis, we found several meaningful results. First, key policy actors in data industry are data firms and the government among stakeholders. Second, two major concerns are that firms frequently invade personal privacy and the global companies obtain monopolistic power in data industry. This paper finally suggests policy and strategy in response to regulatory issues. The government should activate the domestic agent system for the supervision of global companies and increase data protection. Companies need to address discriminatory regulatory environments and expand legal data usage standards. Finally, individuals must embody an active behavior of consent.

• Asia-Pacific Journal of Business
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• v.11 no.3
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• pp.185-198
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• 2020

Purpose - The purpose of this study is to examine the effect of performance-related pay on gender labor productivity differences theoretically and empirically. Design/methodology/approach - This study analyzes the Principal-Agent model in which a firm employes many male and female workers under moral hazard, and uses large survey data from Survey of Business Activities of MDIS (MicroData Integrated Service) in Korea. The fixed-effect model is employed in order to analyze the data. Findings - The theoretical result is that, after performance-related pay is offered to workers, the effect of performance-related pay on gender productivity is determined by whether the female ratio within firm affects firm's performance(such as revenue and profit) per capita. The empirical result is that, before performance-related pay is provided for all workers, the firm's female ratio does not affect firm's revenue and profit per capita at all, but after it is offered, the female ratio positively affects firm's performance per capita. Research implications or Originality - Fixed pay does not bring about the difference between male and female productivity, but performance-related pay affects female productivity more positively than male productivity in Korean firms. It means that female workers are more sensitive to incentives than men in Korea.

• The Journal of Information Systems
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• v.23 no.4
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• pp.119-145
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• 2014

Under the premise that information privacy concerns can atrophy e-commerce by causing particular behaviors of Internet users, this study focused on exploring the causes of information privacy concerns, the related information privacy protective responses of Internet users, and measures for alleviating the information privacy concerns. This study is based on the 'principal-agent theory,' and established the following as factors that cause information privacy concerns of Internet users: perceived information non-transparency; perceived action uncertainty. Also, the information privacy concerns caused by the factors were established as the cause of information privacy protective responses of Internet users. Also, the concept of 'signaling' and 'incentive,' which were presented to solve the adverse selection and moral hazard issue in the host-agent theory, was introduced to establish the following as factors that alleviate information privacy concerns: trust; informativeness. Those factors were included in the research model to conduct an empirical analysis. The analysis has revealed that both the perceived information non-transparency (p<0.01) and perceived action uncertainty (p<0.01) as to websites had a significant impact on information privacy concerns. Also, information privacy concerns of Internet users (p<0.01) had a significant impact on their information privacy protective responses who strive to protect their personal information. In addition, when trust and informativeness, which were established as factors that can alleviate information privacy concerns, were empirically analyzed, trust and informativeness had the effect of alleviating information privacy concerns. Based on the findings, the following was confirmed: Boosting the trust of Internet users in websites and offering useful information related to personal data can play a key role in alleviating the information privacy concerns of Internet users.

• Proceedings of the Korea Information Processing Society Conference
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• 2006.05a
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• pp.311-314
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• 2006

Our paper proposes an agent based automated negotiation model. The agents can perform an integrative negotiation with multi-issue in a one-to-many way. The negotiation protocol follows the offer-counteroffer principal, and an adapted offer generation strategy. With the utility theory, agent could evaluate the offers and determine the following actions. In order to yield a top-quality deal and shorten the negotiation period, agents propose multiple offers, which consist of a particular combination of issue values and lave the identical utility with the given utility. The experiment shows that the model ensures the participants could reach a better agreement in a short time.

• Molecular & Cellular Toxicology
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• v.2 no.3
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• pp.216-221
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• 2006

The cholinesterase-inhibiting organophosphorous (OP) compounds known as nerve agents are highly toxic. The principal toxic mechanism of OP compounds is the inhibition of acethylcholine esterase (AChE) by phosphorylation of its catalytic site. The reversible competitive inhibition of AChE may prevent the subsequent OP intoxication. In this study, three-dimensional quantitative structure-activity relationship (3D-QSAR) was performed to investigate the relationship between the 29 compounds with structural diversity and their bioactivities against AChE. In particular, predictive models were constructed using the comparative molecular field analysis (CoMFA) and comparative molecular similarity indices analysis (CoMSIA). The results indicate reasonable model for CoMFA ($q^{2}=0.453,\;r^{2}=0.697$) and CoMSIA ($q^{2}=0.518,\;r^{2}=0.696$). The presence of steric and hydophobic group at naphtyl moiety of the model may lead to the design of improved competitive inhibitors for organophosphorous intoxication.

• Environmental and Resource Economics Review
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• v.10 no.2
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• pp.259-279
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• 2001

This paper investigates the optimal ratio of the ex post cost settled in the total cost paid to the facility-operating agent and the size of compensation for demand promotion efforts made by the trustee. We have extended McAfee and McMillan(1986)'s principal-agent model by incorporating incentives for the demand promotion efforts. We show that cost reducing effort is negatively related with the ratio of the ex post cost settled in the total cost. In addition, the optimal level of demand promotion effort is determined by the size of the compensation and the ratio of the ex post cost settled. A simulation study confirms our findings from a theoretical model.