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REPORT DATE: Jul 20032. REPORT TYPE: Final
TITLE: Design and Implementation of AlP
AUTHOR(S):Golding, Heidi L. W.; Cox Gerald E.
PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES):Center for Naval Analyses 4825 Mark Center Drive Alexandria, Virginia 22311-1850
SPONSORING AGENCY NAME(S) AND ADDRESS(ES):Military Personnel Plans and Policy Division ( To evaluate AlP's design and implementation, we modeled simplified bidding systems, reviewed auction design materials, and discussed the Navy's assignment system and potential bidding systems with auction experts and Navy personnel. We highlight, in this annotated briefing, our concern that gaming may occur; we also identify several options to mitigate it. Encouraging competition is among the most promising strategies to minimize gaming. Other mechanisms, such as encouraging early bidding, are also worth further investigation.In sum, we believe AIP offers the Navy a potentially effective distribution tool, but it is likely that the AIP system will require adaptations as it evolves. We urge the Navy to increase sailors' awareness and understanding of AIP but to implement AIP gradually and allow flexibility in the decision rules. The Navy can then assess the pilot's success and can test, model, and implement strategies to increase AlP's long term cost-efficiency. Diatribution limited to POD agonc4ey. SpCjfifiL authority-: N00014-00-D-0700.
SUBJECT TERMS