The Research Of Principal-agent Problem In Government Procurement

The problem of principal-agent in the government procurement damage the interests of principal (taxpayer) and potential suppliers, lead to illegal transaction behind the scenes and various forms of the trading power for money. All of these are not conducive to form healthy competition, create a good environment in government procurement market. Therefore, the depth analysis of principal-agent problem in the government procurement, discuss how to monitor and restrain various forms of problems that generated form principal-agent has an important theoretical and reality significance.This paper analyzed the problem of principal-agent in government procurement based on the game theory and proposed some suggestions. First, it analyzed the current state of government procurement, government procurement mode in developed countries and the theory of agency costs. And introduced the theory of principal-agent and agency cost. Second,analyzed the problem of principal-agent in government procurement, including the constitution of principal-agent chain, the causes of problem and three specific forms of principal-agent in government procurement. The third framed a three subjects model based on game theory, including government,procurement officer and supplies, hoping break their conspiracy. Last, proposed some suggestions to solve the problem of principal-agent in the government procurement and put forward a case, analyzed it with the model results, explored ways to resolve such cases.