Auction and Game Theory Based Recommendations for DOD Acquisitions

Abstract

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, item(s) with known costs and existent but understood stochastic risk, and item(s) with unknown costs and/or 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.

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Document Details

Document Type
Technical Report
Publication Date
Mar 24, 2015
Accession Number
ADA623801

Entities

People

  • Andrew Cady
  • Jake Elliott
  • Justin Blott
  • Nicholas Boardman
  • Nick Mastronardi
  • Parker Quinn
  • William Griffin

Organizations

  • United States Air Force Academy

Tags

Communities of Interest

  • Cyber
  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Computers
  • Contractors
  • Contracts
  • Cost Reductions
  • Department Of Defense
  • Electronic Mail
  • Fixed Price Contracts
  • Game Theory
  • Human Behavior
  • Military Acquisition
  • Operations Research
  • Probability
  • Procurement
  • Public Policy
  • United States

Readers

  • Government Contracting/Procurement.
  • Systems Analysis and Design
  • Theoretical Analysis.