The Principal–Agent Leasing Model of 'Company + n Farmers' under Two Division Modes
| Autor: | Yongwu Zhou, Xiaohuan Zheng, Qiongzhi Zhang, Jianjun Yu |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
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Geography Planning and Development “company + n farmers” 0211 other engineering and technologies Principal–agent problem TJ807-830 02 engineering and technology Management Monitoring Policy and Law TD194-195 Decentralization Renewable energy sources Microeconomics 0502 economics and business decentralized mode GE1-350 principal–agent theory media_common 050208 finance 021103 operations research Environmental effects of industries and plants Renewable Energy Sustainability and the Environment business.industry 05 social sciences Economic rent Mode (statistics) Total income Division (mathematics) centralized mode Environmental sciences Incentive leasing model Agriculture incentive coefficient business |
| Zdroj: | Sustainability, Vol 10, Iss 6, p 2015 (2018) Sustainability Volume 10 Issue 6 |
| ISSN: | 2071-1050 |
| DOI: | 10.3390/su10062015 |
| Popis: | The principal&ndash agent leasing model consisting of one risk-neutral company and n risk-averse farmers is proposed by taking into consideration the characteristics of contract-farming and the fulfilment issues existing in the production process of agricultural products. We also discuss the optimal incentive coefficients and rents for n farmers under the two strategies of decentralization and concentration. The analysis suggests that the two division modes have no influence on the determination of the optimal effort level and the incentive coefficient of each party, and under the n farmers, the incentive coefficient given by the company to a single farmer household is not affected by the conditions of other farmer households. In terms of rent, land rent in the decentralized mode is strictly higher than land rent under the centralized mode. In the two modes of division, the total income of the company and the farmers is equal. Taking into account the randomness of the production process of agricultural products, the company will prefer to choose the centralized mode, and the farmers will tend to choose the decentralized mode in cooperation. |
| Databáze: | OpenAIRE |
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