DocumentCode :
2223660
Title :
A Game Anaylysis on Stimulation for Project Manager in Real Estate Development
Author :
Zheng, Cheng ; Duan, Tao
Author_Institution :
Bus. Sch., HoHai Univ., Nanjing, China
Volume :
2
fYear :
2010
fDate :
26-28 Nov. 2010
Firstpage :
552
Lastpage :
554
Abstract :
Project managers are in charge of the process of real estate development and play a crucial part in success of the development. Some payment systems based on principal-agent theory are adopted in stimulation for project managers in China, such as annuity system and stock option. They can stimulate the project manager for hard working and cut down the developer´s agency cost. By applying the game theory approach, this paper establishes a game model of stimulation for a project manager, provides the constraint of individual rationality and the constraint of incentive compatible. Moreover, it analyzed the effects of stimulation for the project manager and draws the conclusions that the cost of risk and total agency cost for the developer are both lower than the case that have no stimulation. Therefore it is essential for developers to stimulate project managers through a proper incentive mechanism. The mechanism is able to stimulate the project manager for hard working and cut down the developer´s agency cost.
Keywords :
game theory; incentive schemes; project management; stock markets; annuity system; developer agency cost; game analysis; game theory; incentive mechanism; payment system; principal agent theory; project manager stimulation; real estate development; stock option; total agency cost; game theory; project manager; real estate development; stimulation;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering (ICIII), 2010 International Conference on
Conference_Location :
Kunming
Print_ISBN :
978-1-4244-8829-2
Type :
conf
DOI :
10.1109/ICIII.2010.298
Filename :
5694637
Link To Document :
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