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

fYear

2009

fDate

24-26 July 2009

Firstpage

312

Lastpage

316

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;

fLanguage

English

Publisher

ieee

Conference_Titel

Business Intelligence and Financial Engineering, 2009. BIFE '09. International Conference on

Conference_Location

Beijing

Print_ISBN

978-0-7695-3705-4

Type

conf

DOI

10.1109/BIFE.2009.78

Filename

5208879