Primjer upotrebe teorije funkcije korisnosti u teoriji ugovora
Example of usage of the theory of utility functions in the contract theory

Summary/Abstract: A traditional economic analysis of options under the conditions of uncertainty and risk is based on an expected utility theory. In this paper, a mathematical model derived from the utility function theory is used for the principal-agent decision problem. This model presents an optimal decision for the type of a contract that should be selected between a principal and an agent. Relative savings obtained by these resulting optimal contracts have been analyzed in comparison with a frequently used cost-plus contract. Data are obtained from several state authorities in order to show the possibility of improvement of the contract type selection with respect to a cost-plus contract. The analysis has shown, under the assumption that the players are rational, that savings can be made by a different manner of contract selection, which confirmed that the use of the theory of the utility function of usefulness enables efficacy enhancement, i.e. optimized usefulness of the participants in the project of tender agreements.

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