Dual-supervisor structure and the design of collusion-proof mechanism for military equipment procurement system

In the aim of reducing the cost of the collusion proof mechanism and improving the welfare of military equipment procurement system, a dual-supervisor management structure is constructed. Under this supervisory structure, a collusion-proof mechanism is designed. Under the designed supervisory structure and collusion-proof mechanism, it is proved that the cost for avoiding collusion is reduced, and the welfare of the military equipment procurement system is improved. To further increase the procurement welfare, the research suggests different incentive reward allocation method to the two supervisors under different conditions.