Author(s)

Hongyan Liu ¹

Affiliation(s)

¹ Economics and Management Department, North China Electric Power University, Baoding City, Hebei Province, China

Corresponding Author

Hongyan Liu

ABSTRACT

The effective and efficient motivation of the sales personnel affects the sales of a firm directly. This paper studies the incentive effects of different compensation contracts under the framework of multi-agent principal agent model, and finds that the optimal contract is not the one that ties one salesperson’s compensation to his own performance, but the one that ties his compensation to all the salespersons’ performance. Factors that influence the incentive degree are also discussed.

KEYWORDS

Compensation incentive, Multi-agent principal agent model, Sales system

CITE THIS PAPER

Hongyan, L., Salesperson Compensation Contract Design Based on Multi-agent Principal Agent Model. Agricultural & Forestry Economics and Management (2018) 1: 7-13.

REFERENCES

[1] Sunil Dutta, Regina M.Anctil. Exclusive dealing, common agency, and multiprincipal incentive theory[J] . Rand Journal of Economics, 2000, 27: 1~ 31.
[2] Zhi Xiaoqiang. Analysis on Salesperson Incentive Compensation System based on model of entrust Agency [J]. East China Economic Management.2008, 22(6):98~101
[3] Tian Houping, Liu Changxian, Guo Yajun. Pay Scheme Designing Method with Multiple Agents’ competition [J]. Journal of Industrial Engineering/Engineering Management.2009,21(4):153~156.
[4] Tian Ying, Pu Yongjian. The measuring method of human resource value based on real option [J]. Management science and systems science process.2005, 8:394~395.
[5] Lin Yinghui, Tu Meizeng.. Core supply chain enterprise coordination of Incentive Contract Design [J].Shanghai jiaotong university learned journal. 2015, 10:65~69.

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