Re: Cost-plus financing

[Robert A. Book]

 On Mon, 11 Oct 2004, Robert A. Book wrote:

  What, no postings on the Nobel Prize?  Is this list still functioning?  ;-)

 We are all still in mourning for Tullock's yet again having been passed
 over by the Committee.  Please, leave us in our grief.

 Eric


How 'bout if I join you instead?


--Robert

Re: Cost-plus financing

[William Sjostrom]

Cost plus is not obviously cost increasing.  It passes on cost uncertainty
to the buyer, who may be the lower cost risk bearer.  This may particularly
be true if there is uncertainty about the final product, that is to say, if
the buyer wants changes during the course of the contract.  Cost plus is a
very simple contract to renegotiate.  On the other hand, it carries
substantial enforcement costs, because production costs have to be verified.
Bill Sjostrom


+
William Sjostrom
Senior Lecturer in Economics
Centre for Policy Studies
National University of Ireland, Cork
5 Bloomfield Terrace, Western Road
Cork, Ireland

+353-21-490-2091 (work)
www.ucc.ie/~sjostrom/

- Original Message -
From: Technotranscendence [EMAIL PROTECTED]
To: [EMAIL PROTECTED]
Sent: Saturday, October 02, 2004 3:10 PM
Subject: Cost-plus financing


 Do you know of any studies of cost-plus financing, especially as used by
 the US government in funding aerospace projects?  I know this is one of
 the main ways NASA funds its projects and it would seem to increase the
 cost of any project.

 Regards,

 Dan
 http://uweb.superlink.net/neptune/MyWorksBySubject.html

Cost-plus financing

[Technotranscendence]

Do you know of any studies of cost-plus financing, especially as used by
the US government in funding aerospace projects?  I know this is one of
the main ways NASA funds its projects and it would seem to increase the
cost of any project.

Regards,

Dan
http://uweb.superlink.net/neptune/MyWorksBySubject.html