Game Theoretic Real Option Approach of the Procurement of Department of Defense: Competition or Collaboration
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Authors
Rabaey, Marc
Subjects
Performance Based Management
Intelligence Base, Option Games, Procurement, Real Options
Intelligence Base, Option Games, Procurement, Real Options
Advisors
Date of Issue
2011-04-30
Date
30-Apr-11
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
The real option analysis for investments is well known. In order to make decisions (delay, stop, start up, continue), management is waiting to collect more information, or is waiting for a better environment (market situation, political situation and so on). However this is without taking into account the (inter)actions of the other players in the market. Option games will place the real options into a strategic (game theoretic) context., i.c. DoD for procurement.
In reality, the complexity of real options and the need for the permanent monitoring of the environment make some managers reluctant to introduce it in the enterprise for investment decision-making. A generic framework ''Intelligence Base'' is being proposed to approach intelligence and game options in a holistic way for the strategy and the investments.
Type
Report
Description
Proceedings Paper (for Acquisition Research Program)
Series/Report No
Department
Acquisition Management
Organization
Identifiers
NPS Report Number
NPS-AM-11-C8P21R03-073
Sponsors
Acquisition Research Program
Funding
Format
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.