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Title: Examining the Institutional Factors Affecting Cost Growth in Defense Acquisition: May Yield More Effective Policy Interventions
Authors: Philip Candreva
Keywords: Cost Growth
Defense Acquisition
Program Performance
Behavioral Finance
Group Decision-Making
Organizational Failure
Ostrom Institutional Analysis and Development Framework
Issue Date: 1-Feb-2010
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Costing
Abstract: Existing studies of cost growth in defense acquisition have been predominantly descriptive rather than explanatory. While observers of defense acquisition acknowledge the role of cultural and institutional factors on program performance, few studies are focused there. However, recent studies have highlighted the importance of decision-making by government officials as a factor affecting cost growth. Informed by the literatures on cost growth, behavioral finance, group decision-making, and organizational failure, this report proposes a research stream to consider factors affecting cost growth beyond those traditionally studied. The study suggests that Ostrom's Institutional Analysis and Development framework can be the foundation of a research stream that includes both field studies and laboratory/computational experiments that can provide fresh insights into the cost growth phenomenon and more importantly aid in the design of more effective policy interventions to address the problem.
Description: Acquisition Management / NPS Faculty Research
Appears in Collections:Sponsored Acquisition Research & Technical Reports

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