An Analysis on Defense Procurement Entry Right Allocation Mechanism

The paper studies the allocation of defense procurement entry right and designs a allocation mechanism of defense procurement entry right. The result shows that the allocation mechanism satisfies strong incentive compatibility, a condition stronger than incentive compatibility. So the allocation mechanism can always get the allocation the military desires, no matter whether the manufacturers´ technology levels are complete information between manufacturers or not. Next work is to design an implementation mechanism to implement the allocation mechanism.