Chapter
Apr 26, 2012

Externality Problem Based on Collusion Theory

Publication: International Conference on Transportation Engineering 2007

Abstract

In externality problem, administrator, supervisor and enterprise who release pollution construct three-tier hierarchy of principal, the third part and agent construction. In this paper, the model of that-under situation of supervisor is honest or not, as a principal, according to the information which was supplied by supervisor, administrator allows or not allows enterprise to collusion between the other two parts-is established. And, through analysis and demonstration of related cost and model, the optimal range of the collusion was got. At last, simulated calculation and conclusion were achieved.

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Go to International Conference on Transportation Engineering 2007
International Conference on Transportation Engineering 2007
Pages: 1946 - 1951

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Published online: Apr 26, 2012

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School of Economy & Administration, Liaoning Gong Ye University, Jinzhou, Liaoning, P.R.China, P.O. Box 121001. E-mail: [email protected]
Yan-biao Di
School of Economy & Administration, Liaoning Gong Ye University, Jinzhou, Liaoning, P.R.China, P.O. Box 121001

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