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Analyses on Agent's Moral Hazard Factors about Management of Eco-environment

Hui Luo, Wnag Yi-min, Zhong Wei-zhou

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Abstract

Aim at the social phenomena about the moral hazard problem of agent in addressing the eco-environmental issues in China, we think that the factors influencing moral hazard mainly include normal income after completing contracts honestly, the probability that the behavior of moral hazard is discovered, discount factor, the additional income of the behavior of moral hazard and inferior income after the behavior of moral hazard is discovered. Then we build a mathematical model which goal is expectant income and analyze the relationship between the behavior motive of moral hazard of agent and its influencing factors. Then, we extend the model that includes the supervisory cost and the influence of random factors. Finally, we put forward correlative strategies about supervisal, inspirit and cooperation.

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What this paper is about

Aim at the social phenomena about the moral hazard problem of agent in addressing the eco-environmental issues in China, we think that the factors influencing moral hazard mainly include normal income after completing contracts honestly, the probability that the behavior of moral hazard is discovered, discount factor, the additional income of the behavior of moral hazard and inferior income after the behavior of moral hazard is discovered. Then we build a mathematical model which goal is expectant income and analyze the relationship between the behavior motive of moral hazard of agent and its influencing factors. Then, we extend the model that includes the supervisory cost and the influence of random factors. Finally, we put forward correlative strategies about supervisal, inspirit and cooperation.

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Available abstract

Aim at the social phenomena about the moral hazard problem of agent in addressing the eco-environmental issues in China, we think that the factors influencing moral hazard mainly include normal income after completing contracts honestly, the probability that the behavior of moral hazard is discovered, discount factor, the additional income of the behavior of moral hazard and inferior income after the behavior of moral hazard is discovered. Then we build a mathematical model which goal is expectant income and analyze the relationship between the behavior motive of moral hazard of agent and its influencing factors. Then, we extend the model that includes the supervisory cost and the influence of random factors. Finally, we put forward correlative strategies about supervisal, inspirit and cooperation.

Key concepts: Moral hazard, Morale hazard, Hazard, Actuarial science, Economics, Social psychology, Business, Psychology

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