School of economics and management,Wuhan University,Wuhan 430072,China;Institute for Systems Engineering,Wuhan University,Wuhan 430072,China 在知网中查找 在百度中查找 在本站中查找
The paper introduced equity sensitivity into the moral risk model with fairness preference, which can depict the diversity of fair understanding for agents, to analyze how equity sensitivity affects the contract structure and the optimal effort level of agents. The results with given parameters show that: the principal will pay a fixed payment correlated with the fair sensitivity coefficient with complete information; when agents’ effort level cannot be observed by the principal, the principal will eliminate unfairness by adjusting the fixed payment for agents with a certain equity sensitivity coefficient; when the sensitivity coefficient is also not observed, the principal makes decision according to expected equity sensitive coefficient.