Type of Document Master's Thesis Author Maxwell, Melinda Ann URN etd-08012012-040330 Title The effects of competition on defense contractor pricing behavior Degree Master of Arts Department Economics Advisory Committee
Advisor Name Title Meiselman, David I. Committee Chair Freiden, Alan N. Committee Member Mackay, Robert J. Committee Member Keywords
- Defense contracts
Date of Defense 1988-05-15 Availability restricted AbstractThis study investigates the effects of competition on the pricing behavior of defense contractors. Prior research in this area has indicated a potential for significant price reductions associated with competition.
Pricing data for five dual source subsystems of the AIM-9M Sidewinder missile were examined. Key findings of the study include:
• The introduction of a second source led to increased price reductions by the first source;
• The first source exhibited a greater price sensitivity to lot quantity changes than the second source:
• The second source was immediately price competitive with the first source; and,
• Each subsystem showed evidence of gaming.
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