Analysis on Agency Chain Decision-Making Based on Characteristics of Multi-Dimensional Game

This paper characterizes the decision-makings in agency-chain with characteristics of multi-dimensional game. Game in the multilayer principal-agent relationships is played between participants\´ decision vectors rather than their single decisions. Our models demonstrate that within a decision vector horizontally, the effort choice and the incentive choice are substituted in some certain degree. Our models also demonstrate that in the agency-chain vertically, participant\´s utility is not only function of his own decisions, but also others\´. Participant makes a "trade-off between effort choice and incentive choice, and optimizes a profile utility based on his position in the agency- chain.