Analysis of ERP II Implementing Option Problem with Asymmetric Information

Abstract

The ERP II implementing options are enlargement of the financial options. Its essence is object item investment and policy decision of management. In this paper ERP II implementing option functions of client and vendor are described. The optimization investment policy decision of the ERP II implementing option has been analyzed under different information conditions. The vendor of ERP II implementing options hides implementing evaluation level information under asymmetry information. It is a principal-agent problem having adverse selection. This paper designed that objective function is taken at the biggest mathematical expectation value of investment profit. The optimization control of state equation is taken at implementing control cost and evaluation level. Using maximal principle the found solution scheme of ERP II implementing options optimization controlling cost and evaluation level has been derived. Finally, the simulation experiment in ERP II implementing options was made. The analysis result of ERP II implementing options is verified.