Quantitative Analysis of Incentive Mechanism Containing Property Rights

There are many defects that cause inefficiency in design of incentive mechenism for classic principal-agent theory. This paper builds a synthetic motive model on the basis of the economic times and intellectualization and intelligence hires capital. A new incentive mechanism is set up in which property rights is contained, and its structure is also analyzed quantitatively. It is shown that it is important for the manager to enjoy his property rights in order to keep the enterprise stead and active.