The uniform price quality adjusted discount auction for aviation continuation pay : potential benefits to the U.S. Marine Corps
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Authors
White, Christopher S.
Subjects
Advisors
Gates, William
Hatch, William
Myung, Noah
Date of Issue
2010-03
Date
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
This objective of this thesis is to explore the potential benefits realized by the Marine Corps if the current Aviation Continuation Pay (ACP) system is replaced with an auction mechanism that utilizes Quality Adjusted Discount (QUAD) methodology. The Uniform Price Quality Adjusted Discount Auction is designed to reduce the total cost of ACP while simultaneously increasing the overall quality of the aviators being retained. The goal of this study was to evaluate the existing ACP system and through experimentation, coupled with economical analyses, determine the feasibility of replacing the current system of assigning the aviator retention bonus with one that incorporates QUAD methodology. The QUAD auction mechanism caters to a wide range of individual reservation values resulting from various economic conditions. An ACP auction would reflect changing economic conditions, because aviators would reveal their true reservation values when bidding. Although an auction mechanism may not always result in a cost savings, it will ensure that the bonus amounts are set at the correct levels. If a QUAD auction were used in lieu of the current ACP system, Marine Corps manpower planners would have the flexibility to more cost effectively retain higher quality aviators while achieving Marine Corps aviator retention goals.
Type
Thesis
Description
Series/Report No
Department
Management
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
xvi, 51 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.