Abstract

Abstract : The purpose of this MBA professional report is to investigate and analyze experiments designed to evaluate the efficiency of alternative auction formats when auctions are used to determine individual assignments for one of several available jobs. During these assignment auctions, bids consist of compensation requests and the subjects are presented with multiple jobs over which to bid. The structure of their bids will be compared across alternative rules for determining job assignments. Also, this research report will investigate and analyze the success of the Assignment Incentive Pay (AIP) auction format. In addition, this research will address and review the Navy's current policy, guidance, and doctrine for billet assignment. Furthermore, the reports recommendations will include how the U.S. Navy can effectively develop a theoretical model of bidding behavior with testable hypotheses, and provide preliminary results on these hypotheses.

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