The Equipment Target Price Adjusting Model Based on Uncontrollable Technical Risk

DOI

10.2991/aebmr.k.191217.152How to use a DOI?

Keywords

equipment target price adjusting, incentive pricing, uncontrollable technical risk, cost control

Abstract

In view of the uncontrollable technical risk resulted in the actual cost is far more than the target price in the process of equipment development, the mode of existing incentive - constrained pricing cannot play an effective role, the equipment suppliers lose enthusiasm for cost control. Equipment target price adjusting model under a single uncontrollable technical risk is given. For the difference of cost overrun and saving caused by uncontrollable technical risk, the cost allocation coefficient and the cost sharing coefficient are given based on the asymmetric incentive theory. On this basis, the equipment target price adjusting models under two or more uncontrollable technical risks are developing, which can provide decision reference for the precise motivation of the actual equipment pricing. Finally, an example is used to verify the feasibility and effectiveness of model.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sheng-xiang SUN
AU  - Shuang HAN
AU  - Li XIE
PY  - 2019
DA  - 2019/12/20
TI  - The Equipment Target Price Adjusting Model Based on Uncontrollable Technical Risk
BT  - Proceedings of the 2019 International Conference on Economic Management and Cultural Industry (ICEMCI 2019)
PB  - Atlantis Press
SP  - 889
EP  - 895
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191217.152
DO  - 10.2991/aebmr.k.191217.152
ID  - SUN2019
ER  -