2010Unpublished venueRequires access

Analysis of government information security outsourcing based on principal—Agent theory

Yuehong Wu, Zhou Wei

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Abstract

Based on principal — agent theory, this paper establishes the principal — agent model of government information security outsourcing that has uncertainties but can be supervised and the principal—agent model that has uncertainties but can not be supervised. It analyses the risks and benefits, the participation constraint and incentive compatibility constraint in the principal—agent process. The paying incentive mode, the cost incentive mode and the trust incentive mode are devised in this paper.

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What this paper is about

Based on principal — agent theory, this paper establishes the principal — agent model of government information security outsourcing that has uncertainties but can be supervised and the principal—agent model that has uncertainties but can not be supervised. It analyses the risks and benefits, the participation constraint and incentive compatibility constraint in the principal—agent process. The paying incentive mode, the cost incentive mode and the trust incentive mode are devised in this paper.

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Available abstract

Based on principal — agent theory, this paper establishes the principal — agent model of government information security outsourcing that has uncertainties but can be supervised and the principal—agent model that has uncertainties but can not be supervised. It analyses the risks and benefits, the participation constraint and incentive compatibility constraint in the principal—agent process. The paying incentive mode, the cost incentive mode and the trust incentive mode are devised in this paper.

Key concepts: Outsourcing, Incentive, Principal (computer security), Principal–agent problem, Computer science, Constraint (computer-aided design), Government (linguistics), Incentive compatibility

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