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Some economic aspects of the weapons systems acquisition process

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Ergas, Henry
Menezes, Flavio

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In this paper we are concerned with the procurement of complex weapons systems. We review the major characteristics of the weapons systems acquisition process that distinguish this process from a standard regulation problem. We then discuss some of the outcomes of the acquisition process and focus on the relevance of the economic theory developed over the last twenty-five years for creating remedies to mitigate the intrinsic inefficiencies in the weapons systems acquisition process.

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