Outsourcing contract design for the green transformation of manufacturing systems under asymmetric information

<p style='text-indent:20px;'>Accepting that suppliers' capability for green transformation of manufacturing systems is private information and the efforts made in process invisibly involve actions buyers, we construct an outsourcing model including services before project delivery maintenance within warranty period after research optimal contract design buyers. We find buyer can a set menus, fixed compensation variable related to quantity energy conservation emission reduction (ECER), identify suppliers with different capabilities encourage them make best under asymmetric information. Second, capability, needs pay rent supplier high ability. Meanwhile, existence will low ability exert insufficient effort, always reduce buyer's expected utility. In addition, example analysis shows reduces number ECERs buyer. Therefore, it suggested government should consider screening technology suppliers, disclose market recommend negative impact caused by information.</p>