Abstract:   In the regulating of enterprise production safety, the information owned by the government and enterprises is asymmetry. In other words, it is a commissionagent relationship between the government and enterprises. The government owns less information than the enterprises. Based on the commissionagent theory, the tipping point of production safety investment for enterprises and regulating cost for the government are discussed in this paper. A mathematical model is developed to describe the investment by enterprises and the regulating cost for the government on production safety regulating in considering profit return lag. With this model, analysis shows that the longterm influence of the commissionagent relationship between the enterprises and government is different from the shortterm one on the production safety investment made by the enterprises and the regulating cost of the government.

Key words:  commission-relation, production safety regulating, investment return lag