Analysis on the Principal-agent Relationship between Agricultural Machinery Outsourcer and Agricultural Machinery Operation Service Provider

According to principal-agent theory, the paper analyzes the principal-agent problems in the agro-machinery outsourcing such as moral hazard and incentive mechanism designing owing to the asymmetric information, and gives the model of principal-agent relationship between the outsourcer and the agricultural machinery service provider. Furthermore, the papers analyzes the agent costs of outsourcer and incentive remuneration intensity coefficient of provider and points out that the designing of incentive mechanism for provider must reflect the influences of provider' specialty, the change of external environment and the agent costs of outsourcer.