The Principal-Agent Model Based On Win-Win Cooperation

The principal-agent model built by Wilson, this model based on the assumption of hiringthe labor by capital, which is sharply conflicting interests relations between principal-agentboth sides. Even it has taken 30-year development to form a systematic incentive scheme theory,but it has not solved the problem of agency fundamentally.This article regarded the human resources as same as the material capital within theproduction factors. This change brought the relationship between agent and client fromhirer-hireling to cooperation and the claim for residue ownership from owned by client to shareboth sides. This cooperation model can stimulate the agent's working force, which explores thecreation potential of the human resources; evades the moral risk and the matter of adverseselection, to realize the win-win cooperation.As the new angle of exploring principal-agent model, based on the classicalprincipal-agent model, this article constructed the new principal-agent model by introducingfactor of the pro rata share and improving the objective function and the restraint conditions. Itverified the validity of the model through mathematical-analysis, and explained the relationbetween labor and capital under the knowledgeable-based economy mathematically.