Changing behaviours in defence acquisition: a game theory approach

Why do so many major defence contracts fail to deliver to the contractually agreed performance, time and cost requirements? This paper identifies the conspiracy of optimism as an important factor in the initiation of many projects. Using a combination of Game Theory and participatory workshops, we formulate a theory on the conspiracy of optimism and test it experimentally. This work forms part of a culture and behaviour change initiative within Defence Acquisition involving the Ministry of Defence and many defence contractors.