Design and extension of incentive mechanism framework based on monitoring mechanism

Mathematic models of incentive mechanism are designed with mathematic analytic methods and game theory.Supervision mechanism is considered and analyzed in the design of incentive mechanism.This extends the theory framework of the incentive mechanism.The results are as following.Supervision mechanism is related with incentive mechanism.They can replace each other.They can encourage or guide the agent to work hard.Therefore,the function of the incentive mechanism and the supervision mechanism should be considered synthetically in the design of the incentive contract.The analyses of supervision mechanism in the incentive mechanism not only have theoretical innovation,but also have bigger application value in practice.