Abstract: Oliver Hart and Bent Holmstrom shared the 2016 Nobel Prize in Economics for their outstanding research achievements in contract theory. Meanwhile, they also aroused extensive academic attention to contract theory. As one of the most important branches of modern microeconomics, contract theory provides the scientific analysis logic of how to design a more reasonable contract under rational conditions to guarantee the distribution of interests of the parties concerned.

Key words: contract theory; incentive theory; incomplete contract; transaction cost