A kind of algorithm was provided to resolve the calculating problem of stochastic frontier model and applied to electric power industry.By Matlab,maximum likelihood estimation is adopted to evaluate σ and λ of stochastic frontier model in this paper, then the technical efficiency of electric power companies is calculated. The calculated and analyzed results reflect the situation of the management of electric power industry on the whole,that is ,the electric power companies with high technical efficiency are those which have developed their modern enterprise system successfully.
This paper first gives an explanation of moral hazard in the insurance field,and then offers a game theory model about insurance pricing according to the non zero sum game analysis between the insurer and the insured when moral hazard exists.On the basis of the game analysis,this paper also presents a lowest pricing formula and studies the cost of moral hazard simultaneously.
