Unique Transaction Costs in Defense Market(s): the Explanatory Power of New Institutional Economics

Report Number: NPS-AM-05-024

Series: Acquisition Management

Category: Transaction Cost Economics (TCE)

Report Series: Proceedings Paper

Authors: John Driessnack

Title: Unique Transaction Costs in Defense Market(s): the Explanatory Power of New Institutional Economics

Published: 2005-05-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2005/NPS-AM-05-024.pdf

Keywords: US Military-Industrial Complex

Abstract:

Concerns about the US Military-Industrial complex have seemed a permanent fixture in the DoD. Initial studies outlined the uniqueness of the market, but continued utilization of classic economic approach continues with little explanatory power. This paper offers an alternative approach using transaction-costs analysis and the explanatory power of the New Institutional Economic and Public Choice School. The approach provides explanatory power in the defense markets