• ISSN 0258-2724
  • CN 51-1277/U
  • EI Compendex
  • Scopus
  • Indexed by Core Journals of China, Chinese S&T Journal Citation Reports
  • Chinese S&T Journal Citation Reports
  • Chinese Science Citation Database
Volume 19 Issue 6
Dec.  2006
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Article Contents
ZHAO Lili, TAN Deqing, HUANG Qing. Pareto Improvement to Return Model in BOT Project[J]. Journal of Southwest Jiaotong University, 2006, 19(6): 769-773.
Citation: ZHAO Lili, TAN Deqing, HUANG Qing. Pareto Improvement to Return Model in BOT Project[J]. Journal of Southwest Jiaotong University, 2006, 19(6): 769-773.

Pareto Improvement to Return Model in BOT Project

  • Received Date: 10 Jan 2006
  • Publish Date: 25 Dec 2006
  • A traditional return model of the BOT project was derived based on the principle-agent theory.Analysis of the mode indicates that the agent(project company) will not chose an action favorable to the principal(government).This is because the traditional contract does not meet the agent’s participation constraint.A Pareto improvement was made to the traditional return model,which makes the model meet the agent’s participation constraint.In the modified model,the agent will choose an action favorable to the principal,while its own return is not affected.

     

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