A Game Theory Approach and Application for Government Acquisition

Abstract

This research focuses on the development of a game-theoretic approach to drive strategies for contract negotiations in government acquisition. The main objective of the approach is to provide the government the ability to move the bidding vendor into a preferred negotiation point and to understand potential trade-offs around these negotiation points. The approach also expedites the decision-making process in acquisition and provides more transparency of each side during the negotiation. Results from live experiments involving players with acquisition experience from government and industry using this approach will also be presented.