TITLE:
Agent Risk Taking and Efforts in the Context of Multiple Heterogeneous References
AUTHORS:
Qiong Wang, Chengyuan Wang, Liang Wan
KEYWORDS:
Behavioral Agency, Multiple Heterogeneous References, Risk Taking, Agent Efforts
JOURNAL NAME:
Journal of Service Science and Management,
Vol.7 No.6,
December
16,
2014
ABSTRACT: The
purpose of this paper is to discuss agent risk taking and efforts in the
context of multiple heterogeneous references. We focus on two key references in
terms of performance target and aspiration income. And we also introduce them into
the principal-agent model. By the method of numerical simulation, our results show
that performance target and the gap of
psychological reference income have complex interaction influences on agent
risk taking and efforts. In addition, profit-sharing coefficient plays moderating
role in these complex relationships. Our results also provide good evidence and
supplement to Pepper and Gore’s proposition.