Incentives Model and Application Research Based on Selective Rationality Economic Behavior

Incentives Model and Application Research Based on Selective Rationality Economic Behavior


Author:Qi Hongqian Journal:China Industrial Economics  Date:2005(2)

Keywords Incentive; Selective rationality; Social factor; Psychological factor

Abstract

The traditional pattern of research incentive in enterprises is mainly under the theory and target economics. This paper tries to prove that under the condition that the information is unsymmetrical and the object of those involved is different, the compatibility of incentive's mechanism is a key point that affects the efficiency of agent in organizations by developing and researching economic man analysis pattern. In this paper, based on economic man pattern, the investigate of variable in incentive model shows that in the normal economic analysis framework of utility maximization there are selective rationality factors, and there are social factors, psychological factors and their joint effect in process of incentives. The joint effect of incentives to individual's essential behavior and social cultural pattern is indispensable factor in researching incentives.

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