If the market of military procurement conforms to the double auction (Chatterjee and Samuelson, 1983), the government and the manufacturer can try to reach a binding agreement and maximize the monopoly profit. When they both comply with the agreement, the game constitutes a cooperative game. The government and the firm can extend the periods of the game from one to two through signing the research and development contract. When they carry out the research and development contract in the second phase, the trading probability in the first phase that is double auction model will rise.
However the R&D contract causes an increase of transaction probability, the market offers an opportunity let the ineligible manufacturer participate in the defense procurement. We can find the trade-off relationship between the advancement of trading probability and the appearances of unqualified firm. The result is consistent with Inefficiency theorem that an incentive-compatible mechanism which is ex post efficient will not be individual theorem.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0629109-161255
Date29 June 2009
CreatorsLin, Guei-yi
ContributorsShih-shen Chen, Tru-gin Liu, Yung-nian Tung
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0629109-161255
Rightscampus_withheld, Copyright information available at source archive

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