On effective supervision of equipment support outsourcing

Abstract

Equipment support outsourcing is an effective approach to strengthen the construction of equipment support. But due to the imbalance of information between the contractee and the contractor, the contractor tends to take self-profitable actions. And the self-profitable actions are crucial factor to affect and limit the increase of profits of equipment support outsourcing. In order to increase the profit, the prevention and control of self-profitable actions are studied. The effect of supervision to the contractor's self-profitable actions and the futility of ever dependence on supervision are discussed with game theory in the beginning and an optimal information model of supervision with corresponding design is presented.