Research on the Principal-agent Relationship in the Implementation of the "Project 985" Policy.

Implementation of the "Project 985" as a basic innovation policy including 39 China's prestigious universities plays an important role in the strategy of revitalizing China through science, technology and education. Based on the principal-agent theory model in the new institutional economics, the three principal-agent relationships in the whole implementation process of the "Project 985" are analyzed, ie. the government-university, university-base/platform and base/platform-member relationships. It is revealed that the three relationships will cause a moral hazard between the principal and agent. [ABSTRACT FROM AUTHOR]