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Quality vs. Quantity in Military Procurement

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  • Rogerson, William P
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    Abstract

    It is often argued that the same expenditures on military procurement would produce a more effective defense if larger numbers of less sophisticated (and thus cheaper) weapons were purchased. This paper shows that such a result can occur even if the military derives no private consumption value from technically sophisticated weapons. Rather, the organization of the decision-making process itself can produce this result. This suggests some possible solutions through organizing decision-making in a different fashion. Copyright 1990 by American Economic Association.

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    Bibliographic Info

    Article provided by American Economic Association in its journal American Economic Review.

    Volume (Year): 80 (1990)
    Issue (Month): 1 (March)
    Pages: 83-92

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    Handle: RePEc:aea:aecrev:v:80:y:1990:i:1:p:83-92

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    Cited by:
    1. Kangaspunta, Jussi & Liesiƶ, Juuso & Salo, Ahti, 2012. "Cost-efficiency analysis of weapon system portfolios," European Journal of Operational Research, Elsevier, vol. 223(1), pages 264-275.
    2. Milstein, Irena & Tishler, Asher, 2012. "The inevitability of capacity underinvestment in competitive electricity markets," Energy Economics, Elsevier, vol. 34(1), pages 62-77.
    3. William P. Rogerson, 1993. "Economic Incentives and the Defense Procurement Process," Discussion Papers 1078, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Andreas Blume & Asher Tishler, 2000. "Security Needs and the Performance of the Defense Industry," CIG Working Papers FS IV 00-04, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    5. Yongmin Chen & Ron Smith, 2001. "Equilibrium Cost Overruns," Annals of Economics and Finance, Society for AEF, vol. 2(2), pages 401-414, November.
    6. William P. Rogerson, 1993. "Choice of Treatment Intensities by a Nonprofit Hospital Under Prospective Pricing," Discussion Papers 1069, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    7. Doh Shin Jeon, . "Relying on the agent in charge of production for project evaluation," Economics Working Papers 623, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2006.
    8. Ivanov, Maxim, 2010. "Informational control and organizational design," Journal of Economic Theory, Elsevier, vol. 145(2), pages 721-751, March.
    9. Renaud Bellais, 2013. "Technology and the defense industry: real threats, bad habits, or new (market) opportunities?," Post-Print hal-00947395, HAL.

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