2011Contemporary Finance and EconomicsRequires access

The Power Rent-Seeking Model and the Regulation Measurements of the Government Technology Procurement

Dong Shao-lin

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Abstract

As an effective public policy,government technology procurement can drive technology innovation greatly.Based on the motive of economic man,power rent transactions exist inevitably in the area of government technology procurement.This paper constructs the model of power rent seeking with the help of principal-agent theory.Power rent seeking can bring about kinds of social harms,such as destructing the social productive level,lowering the public benefit level,causing the X low efficiency of the scientific research units.In order to minimize the size and possibility of the power rent seeking,it is necessary to clarify the roles of the government authorities,construct the rent dissipation mechanism,carry out the mechanism of combing the policy of high pay to discourage corruption with prevention measurements,perfect the supervision mechanism of rent-seeking behaviors,and strengthen the punishment of rent trading.

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What this paper is about

As an effective public policy,government technology procurement can drive technology innovation greatly.Based on the motive of economic man,power rent transactions exist inevitably in the area of government technology procurement.This paper constructs the model of power rent seeking with the help of principal-agent theory.Power rent seeking can bring about kinds of social harms,such as destructing the social productive level,lowering the public benefit level,causing the X low efficiency of the scientific research units.In order to minimize the size and possibility of the power rent seeking,it is necessary to clarify the roles of the government authorities,construct the rent dissipation mechanism,carry out the mechanism of combing the policy of high pay to discourage corruption with prevention measurements,perfect the supervision mechanism of rent-seeking behaviors,and strengthen the punishment of rent trading.

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Available abstract

As an effective public policy,government technology procurement can drive technology innovation greatly.Based on the motive of economic man,power rent transactions exist inevitably in the area of government technology procurement.This paper constructs the model of power rent seeking with the help of principal-agent theory.Power rent seeking can bring about kinds of social harms,such as destructing the social productive level,lowering the public benefit level,causing the X low efficiency of the scientific research units.In order to minimize the size and possibility of the power rent seeking,it is necessary to clarify the roles of the government authorities,construct the rent dissipation mechanism,carry out the mechanism of combing the policy of high pay to discourage corruption with prevention measurements,perfect the supervision mechanism of rent-seeking behaviors,and strengthen the punishment of rent trading.

Key concepts: Rent-seeking, Procurement, Government (linguistics), Government procurement, Public economics, Mechanism (biology), Power (physics), Business

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