상호 에이전시관계와 평가지표 구조

Reciprocal Agency and Performance Measure: Implications for Subcontracting, M-Form and Governance in Japan

In this paper, we explain such reciprocal relationships under different organizations in terms of optimal tradeoff between incentive-provision and risk-sharing. We analyze a simple model of principal and agent, in which two firms play interchanging roles of agent and principal, and show that optimal contracts can provide more incentives in reciprocal relationships. We show that reciprocal relationships alleviate or strengthen moral hazard. In fact, the optimal incentive coefficient for the second-period agent increases because the inference from the first-period results in more uncertainties. We observe reciprocal relationships among firms in the subcontractor system to explain some features.