Research on incentive mechanism of banks considering 3PL overconfidence behaviors

Combining the psychology knowledge,considering the overconfidence behaviors in traditional principal-agent model,the paper studies on how banks prompt 3PL.When considering the overconfidence behaviors,the paper gives the results of overconfidence in ability and in effort.The conclusions show banks will give 3PL more variable reward,and increase as the overconfidence enhances;compared with the overconfidence in ability,the overconfidence in effort will make 3PL work harder.The significance of the research is that banks are able to make reasonable reward mechanism according to 3PL's overconfidence level and type.