An Analysis of the Defense Spacecraft Market.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING
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This study examines the defense spacecraft market in the context of the classical industrial organization paradigm. It takes as the basis for its evaluation of the market the concept of effective competition, using the criteria proposed by Stephen Sosnick in his article, Toward a Concrete Concept of Effective Competition. The thesis begins by briefly describing the origin and evolution of the military space program. It then addresses the structure of the market, outlining the composition and concentration of the industry, the nature of the product, the extent of demand, and the conditions of supply. It discusses the particular structural features of the Department of Defense market. It shows how the conduct of the market is predominantly influenced by the DOD acquisition process for space systems. The examination of market performance focuses on internal and allocative efficiency, revealing a dramatic decline in productivity since the mid-1960s, due in large part to the increase in the unit cost of materials. It concludes by highlighting the links between the structure, conduct, and performance and shows how deviations for effective competition in the market result from these interactions. Keywords Aerospace industry Military procurement Economics. Theses.
- Economics and Cost Analysis
- Unmanned Spacecraft