Behavioral Economics Analysis In Agency

"Rational-economic man" hypothesis and behavior economic theory propose two kinds of explanations of behavior of people. Rational-economic man hypothesis think,(1) " rational-economic man " has profit nature, which means pursuing one's own interests is the basic motive of driving economic behavior of people, (2)The purpose that everybody participates in the economic activity lies in seeking to maximize the individual interests, (3)People's behavior is reason.The economic reason of the rational economic man is shown as: People are in the market activity, consider one's own interests, and have precise calculation to the gain and loss, meanwhile its natural instinct pursues private interests, on the egoistic principle, but these can make the wealth of society reach maximization. In new classical economics opinion, economic reason equals with one's own maximization of interests, the rational economic people are the pursuer of utility maximization.In traditional principal-agent theory, assumptions of client and agent are based on rational-economic man hypothesis. They usually pursue personal utility to maximization by hook or by crook. Therefore trust can not be admitted there, it is a kind of extravagant hope to cooperate even more. The common encouragement means is the remuneration one tied to personal achievement, and to set up more tight of systems of layer department, but because client and agent are scarce to believe in each other, any mechanism can give one party encouragement of choosing inefficient behavior for its own purpose, which has caused the invalidation of various incentive policies, and has finally led to the encouragement predicament of traditional principal-agency theory.Behavior economics is not antagonistic to traditional economics, and it has just considered the irrational factors that haven't considered in traditional economics, offering the encouragement predicament of traditional principal-agency theory with an opportunity. However, in the behavior economics, behavior economic theory thinks people's behavior to be irrational. People's logos are limited by three following respects in the complicated and changeable social economic activity: uncertainty and complexity of condition; incompletion of information; limitedness of people's cognition. "Person courting the optimum" has become "person seeking thesatisfactory" here in classical theory.Therefore behavioral economics theory can explain the irrational factor of people in the principal-agent problems. In here, people are richer in emotion, not only pursue maximization of wealth, but pursue comprehensive satisfaction. Through considering the humanized factor in enterprises, we can solved the encouragement dilemmas of the traditional principal-agent theory, and has put forward the incentive means how to raise the efficiency in enterprises, it will have very big function to solving the problem of principal-agent.Culture is an important factor of influencing the group behavior. Therefore one kind of the colony—enterprise, social culture has important influence on the mode of enterprises organization. The article, through the comparative analysis of the mode of Japanese enterprises and the mode of American enterprise, think enterprise mode of Japan and enterprise mode of U.S.A. each have pluses and minuses. Design of the enterprise mode of Japan has considered more humanized factors. And it is more rational with the mechanism design in enterprises of U.S.A. Finally, the article recommends setting up one enterprise mode, lying between the mode of Japanese enterprise and American enterprise, and learning the advantage of the two comprehensively, in order to reduce the emergence of the problem of agency.