AJIBM  Vol.9 No.3 , March 2019
Two Level Principal-Agent Analysis in Farmland Transfer
With the acceleration of urbanization, a large number of rural labor forces have been transferred. As the basic means of production, land circulation is becoming more and more frequent. Scale management and land circulation have become the necessary trend of agricultural modernization. Based on the purpose of maximizing the interests of the participants and further optimizing the allocation efficiency of land resources in the process of land transfer, this paper constructs a dual principal-agent model of farmers and intermediary organizations, intermediary organizations and scale operators, which is multi-to-one and one-to-many principal-agent relationship respectively, and finds out the optimal level of effort. Finally, it analyses the influence of different factors on the interests, and puts forward some suggestions to the principal and agent based on the analysis results, in order to promote the further development of the land circulation market.
Cite this paper: Shen, H. and Liu, Y. (2019) Two Level Principal-Agent Analysis in Farmland Transfer. American Journal of Industrial and Business Management, 9, 427-438. doi: 10.4236/ajibm.2019.93028.

[1]   Zhang, H.Y. (2002) The Transfer of Rural Land Adjustment and Use Rights in China: Some Comments. Management World, No. 5, 76-87.

[2]   Zhao, J. (2018) Study on the Impact of Agricultural Land Transfer on Long-Term Investment of Farmers in Agriculture. Master’s Thesis, Shanxi University of Finance and Economics, Taiyuan, 12-19.

[3]   Li, Y.N. (2016) Research on the Status Quo and Restrictive Factors of Agricultural Land Transfer in Guizhou Province: China’s Agricultural Resources and Regionalization. Research Report, No. 3, 97-110.

[4]   Li, Y.L., Zhu, Y.F., et al. (2015) Research on Rural Land Transfer Maturity Evaluation Based on Analytic Hierarchy Process. Journal of Central University of Finance and Economics: Theoretical Economy, No. 9, 63-70.

[5]   Ning, J., Yin, H.D., et al. (2018) Is Land Confirmation Right-Right?—Empirical Analysis Based on Survey Data from Poverty-Stricken Areas: Agricultural Economic Issues. Others, No. 9, 118-127.

[6]   He, F. and Wen, C.X. (2013) Research on Interest Coordination Mechanism of Rural Land Indirect Transfer Supply Chain—Based on Principal-Agent Model: Operational Planning and Management. Theoretical Analysis and Method Discussion, 22, 60-67.

[7]   Shan, Y.J., Liang, X.Y. and Xue, R.H. (2017) Analysis of the Benefits of Land Circulation Subject Based on Mixed Strategy Game Model. World Agriculture, No. 8, 135-139.

[8]   Wei, C.J. and Zhang, S.N. (2017) Analysis of the Evolutionary Interests of the Main Body of Rural Land Transfer in China. Economic Survey, No. 2, 49-55.

[9]   Wang, Z.Z. and Jian, L. (2010) Research on Related Issues of Rural Land Transfer Intermediary Organization: Scientific Decision. Enterprise Management, No. 3, 43-50.

[10]   Zhang, J. (2012) Study on Rural Land Transfer Intermediary Service. Journal of Nanjing Agricultural University.

[11]   Ross, S.A. (1973) The Economic Theory of Agency: The Principal’s Problem. American Economic Review, 63, 134-139.

[12]   Bernheim, B.D. and Whinston, M.D. (1986) Common Agency. Econometrica, 54, 923-942.

[13]   Bernheim, B.D. and Whinston, M.D. (1985) Common Marketing Agency as a Device for Facilitating Collusion. Rand Journal of Economics, 16, 269-281.

[14]   Martimort, D. and Stole, L. (2009) Market Participation in Delegated and Intrinsic Common-Agency Games. Rand Journal of Economics, 40, 78-102.

[15]   Zhang, W.Y. (2004) Game Theory and Information Economics. Shanghai People’s Publishing House, Shanghai, 397-538.

[16]   Tan, S.K., Zhao, Y. and Liu, X.L. (2018) Study on the Principal-Agent Relationship between Local Government and Village Committee in Preventing Land Acquisition Conflict. Journal of Huazhong Agricultural University (Social Science Edition), No. 3, 130-136.

[17]   Li, R.R. and Mei, S.Y. (2014) Research on the Principal-Agent Relationship of Land Transfer Cooperatives: Xinjiang Agricultural Land Economy. Agricultural Industry Organization, No. 9, 25-32.

[18]   Zhang, Y.C. and Zhang, W.X. (2005) Analysis of Principal-Agent Relationship in Rural Land Transfer Market. Rural Economy, No. 4, 31-32.

[19]   Li, H. and Gao, L. (2009) Analysis of Multiple Principal-Agent Structure and System Imbalance in China’s Agricultural Land Circulation: Agricultural Economic Issues. Resource Allocation, No. 11, 71-77.