Auction and Game Theory Based Recommendations for DOD Acquisitions
AIR FORCE ACADEMY COLORADO SPRINGS CO
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This paper synthesizes auction and game theory literature into specific military acquisition improvement recommendations. We characterize acquisition environments into distinct categories, present the results of seminal literature that pertains to each category, and translate the literatures recommendations for military contracting practitioners. The relevant categories are procurement with unknown cost and no risk, items with known costs and existent but understood stochastic risk, and items with unknown costs andor unknown stochastic risk. We break out these three categories into sub-categories depending on whether there are one or multiple potential competing vendors, and, if multiple, by whether we must buy one lot or potentially a schedule of lots from a host of vendors.
- Operations Research
- Logistics, Military Facilities and Supplies