Show simple item record

dc.contributor.advisorMyung, Noah
dc.contributor.authorKelso, Eric W.
dc.dateJune 2014
dc.date.accessioned2014-08-13T20:17:46Z
dc.date.available2014-08-13T20:17:46Z
dc.date.issued2014-06
dc.identifier.urihttp://hdl.handle.net/10945/42658
dc.descriptionApproved for public release; distribution is unlimiteden_US
dc.description.abstractAviation Career Continuation Pay (ACCP), the retention bonus for Naval Aviators, has historically failed to meet stated retention goals. For fiscal year 2013 Naval Personnel Command reported that ACCP exceeded retention goals in some communities by more than 60%, while simultaneously falling over 60% short of retention objectives in others. We analyze the potential for using auction mechanisms to improve upon these results by controlling cost, quantity, and quality of aviators retained. Using survey data to estimate aviators’ quality and willingness to stay in active duty naval aviation, we compare the results of ACCP against three mechanisms, 1) uniform-price auction, 2) Quality Adjusted Discount (QUAD) auction, and 3) Combinatorial Retention Auction Mechanism (CRAM). We find that by implementing a uniform-price auction naval aviation can exactly meet 100% of its retention objectives, while reducing costs in some communities by more than $2,200,000. Additionally, while we find no significant correlation between officer quality and retention costs, we demonstrate the potential for QUAD auctions to improve upon these results by further reducing retention costs and improving the overall quality of retained aviators. Lastly, our implementation of CRAMs reveals the potential to reduce individual retention costs nearly 20% through the use of non-monetary incentives.en_US
dc.publisherMonterey, California: Naval Postgraduate Schoolen_US
dc.rightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. As such, it is in the public domain, and under the provisions of Title 17, United States Code, Section 105, may not be copyrighted.en_US
dc.titleImproving the efficiency of aviation retention bonuses through the use of market mechanismsen_US
dc.typeThesisen_US
dc.contributor.secondreaderGates, William
dc.contributor.departmentGraduate School of Business & Public Policy (GSBPP)
dc.subject.authorAviation Retentionen_US
dc.subject.authorAviation Career Continuation Pay (ACCP)en_US
dc.subject.authorAuctionen_US
dc.subject.authorBonusen_US
dc.description.recognitionOutstanding Thesisen_US
dc.description.serviceLieutenant Commander, United States Navyen_US
etd.thesisdegree.nameMaster of Business Administrationen_US
etd.thesisdegree.levelMastersen_US
etd.thesisdegree.disciplineBusiness Administrationen_US
etd.thesisdegree.grantorNaval Postgraduate Schoolen_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record