Abstract:

The existing researches for production capacity reservation are lack of quantitative research on government subsidy. We developed the optimal contract of capacity reservation of emergency material with government subsidy by theory knowledge of principle\|agent. We solved the model and discussed the production capacity of enterprises, the cost, government subsidy and other factors affecting the optimal contract. The results provide a reference for the government incentive the enterprise to make the capacity reservation.

Key words: production capacity reservation, emergency material, principle agent, incentive mechanism, government subsidy