The principal-agent model in venture investment based on fairness preference

• Published in: AIMS mathematics Vol. 6; no. 3; pp. 2171 - 2195
• Main Authors: Xu, Dongsheng, Liu, Qingqing, Jiang, Xin
• Format: Journal Article
• Language: English
• Published: AIMS Press 01.01.2021
• Subjects: fairness preference; principal-agent model; venture capital

The fairness preference in the principal-agent relationship is a vital factor that can even determine the success or failure of one program. Under normal circumstances, the capital invested by VC is often several times that of EN, which is one of the reasons for the profit gap between EN and VC. The...