A Game-Theoretic Approach to Military Procurement

• Main Authors: Huang,Ya-Hsiung, 黃亞雄
• Other Authors: Chen,Mei-Hui
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/12619374481311909396

碩士 === 國防管理學院 === 國防財務資源研究所 === 95 === Over the past decade, game theory has been increasingly used to analyze the strategic interactions across many different settings, and to predict human behavior and organizations with parallel and conflicting goals. In 2004, Taiwan government announced to approve a special budget to procure arms. Henceforward, this issue never comes to an end and has given rise to a lot of debates. We investigate the evolution of the military procurement issue by integrating the Legislative and Administration Yuan's actions and various interests in an infinitely repeated game. We specify the payoff functions of each player under different cases and find that the best strategy for the administration is to propose an optimal military procurement plan which is recognized by the citizens. Furthermore, we propose some lemmas which imply the administration’s interest choice, the relationship among various parameters and the optimal policy for breaking through the deadlock. Finally, we present a simulative study with the proposed model and extend our two-staged sequential game to a general case of k-staged game and derive a general formula to obtain the expected payoffs for each player, which did promote a profound understanding about Taiwan's military procurement.