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Price Vs. Performance: The Value Of Next Generation Fighter Aircraft, John M. Stelly
Price Vs. Performance: The Value Of Next Generation Fighter Aircraft, John M. Stelly
Theses and Dissertations
The United States Department of Defense (DoD) is currently recapitalizing its aging fighter aircraft inventory with the F-22A and F-35. While the DoD may consider cost and performance issues, it does not use a quantitative model that effectively measures the tradeoffs between the two. This thesis constructs a hedonic model of the fighter aircraft market to measure the implicit price on fighter performance characteristics and specifically applies it to next-generation aircraft. Data from 50 aircraft from 1949-present were used to construct two models – one based on procurement costs and one based on research, design, test, and evaluation (RDT&E) costs. …