Cooperation among business incubator, venture capital and entrepreneur from the principal-agent's perspective

摘要

This paper uses framework of one principal and two agents to argue the cooperation among the venture capital, business incubator and entrepreneur. The paper shows that venture capital, entrepreneur and business incubator will cooperate if their private information is fully revealed. At the same time, the three parties will put into the highest effort level and they can be also assigned the highest net profit. Secondly, the tripartite efforts level is lower when one of the three parties cooperates with another. In the end, the tripartite efforts level is the lowest when all of them only pursue their own maximum utility respectively. The effort level that one of the three parties cooperates with another is relevant to the profit percentage of another party.