Research on Incentive Mechanism Design Among Vertical Channel Conflict: An Information Economics Perspectives

Abstract

The channel conflict management is an important part of channel management and effective incentive mechanism design is the core issue of channel conflict management. A incentive model of channel member based on principal-agent theory is discussed in this paper. By calculating, the optimal incentive contracts are given when the effort level of channel member can be investigated or not. The influences of marginal production, coefficient of cost, level of absolute risk reversion, variance of uncertain random variable on incentive mechanism are explored.