Title :
Analysis of ERP II Implementing Option Problem with Asymmetric Information
Author :
Lina, Wang ; Milis, Keon
Author_Institution :
Sch. of Econ. & Manage., Liaoning Univ. of Technol., Jinzhou, China
Abstract :
The ERP II implementing options are enlargement of the financial options. Its essence is object item investment and policy decision of management. In this paper ERP II implementing option functions of client and vendor are described. The optimization investment policy decision of the ERP II implementing option has been analyzed under different information conditions. The vendor of ERP II implementing options hides implementing evaluation level information under asymmetry information. It is a principal-agent problem having adverse selection. This paper designed that objective function is taken at the biggest mathematical expectation value of investment profit. The optimization control of state equation is taken at implementing control cost and evaluation level. Using maximal principle the found solution scheme of ERP II implementing options optimization controlling cost and evaluation level has been derived. Finally, the simulation experiment in ERP II implementing options was made. The analysis result of ERP II implementing options is verified.
Keywords :
enterprise resource planning; investment; optimisation; ERP II; asymmetric information; financial options; investment profit; management policy decision; mathematical expectation value; optimization investment policy decision; option problem; state equation optimization control; Conference management; Contracts; Cost function; Enterprise resource planning; Ethics; Financial management; Information analysis; Investments; Supply chains; Technology management; ERP II implementing options; asymmetry information; evaluation level; option; principal-agent;
Conference_Titel :
Business Intelligence and Financial Engineering, 2009. BIFE '09. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3705-4
DOI :
10.1109/BIFE.2009.78
