Title :
The adverse selection risk of equipment support outsourcing and its prevention strategy
Author :
Zhang, Fuyuan ; Li, Cui
Author_Institution :
Comprehensive Verification & Inf. Res. Div., Shijiazhuang New Technol. Applic. Inst., Shijiazhuang, China
Abstract :
Support outsourcing is the new development of the equipment support ability construction. Support outsourcing is a “double-edged sword”, which brings about many risks despite the enhanced supporting ability. Adverse selection is the risk we must face in the process of signing contract of support outsourcing. This paper deals with the principle of mechanism to prevent the risk of adverse selection in the process of equipment support outsourcing, and gives a kind of mechanism design with the view of optimization to the payment structure.
Keywords :
optimisation; outsourcing; production equipment; risk management; adverse selection risk; equipment support outsourcing; optimization; payment structure; prevention strategy; signing contract; Contracts; Economics; Game theory; Optimization; Organizations; Outsourcing; Presses; adverse selection; equipment support; outsourcing; prevention;
Conference_Titel :
Quality, Reliability, Risk, Maintenance, and Safety Engineering (ICQR2MSE), 2011 International Conference on
Conference_Location :
Xi´an
Print_ISBN :
978-1-4577-1229-6
DOI :
10.1109/ICQR2MSE.2011.5976705