Research on Performance Incentive Mode of Power Enterprises Based on Incentive Compatibility Principle

Abstract

According to the problem of lacking incentive in the power enterprise's performance management system, a performance incentive mode design is put forward, based on incentive compatibility principle. First, the individual rationality condition and incentive compatibility condition are founded; then, according to the different information disclosure situation in stated-owned enterprises, performance incentive models are established in the symmetric and asymmetric information condition respectively; on this basis, the performance incentive mode in power enterprises is designed; at last, a practical example is introduced to testify the effectiveness of this design.