### Abstract

A strategy to solve the problems of contractors in determining the optimal payment of a contract is presented. It is a four-step contracting strategy for computing probability of success, failure and payoffs of accomplishing a contract. First step is modeling future contracting process stochastically as a Markov process (MP). After the contract has been modelled, transition probabilities between MP states are then computed. The probability of success and failure, and the payoff of a contract can now be computed based on MP theory. Finally, the contractor uses a simple generate-and-test to find the optimal payment for the contract.

Original language | English |
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Number of pages | 1 |

Publication status | Published - 1996 Dec 1 |

Event | Proceedings of the 1996 13th National Conference on Artificial Intelligence. Part 2 (of 2) - Portland, OR, USA Duration: 1996 Aug 4 → 1996 Aug 8 |

### Conference

Conference | Proceedings of the 1996 13th National Conference on Artificial Intelligence. Part 2 (of 2) |
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City | Portland, OR, USA |

Period | 96/8/4 → 96/8/8 |

### Fingerprint

### All Science Journal Classification (ASJC) codes

- Software
- Artificial Intelligence

### Cite this

*Contracting strategy based on Markov process modeling*. Paper presented at Proceedings of the 1996 13th National Conference on Artificial Intelligence. Part 2 (of 2), Portland, OR, USA, .

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**Contracting strategy based on Markov process modeling.** / Park, Sunju; Durfee, Edmund H.

Research output: Contribution to conference › Paper

TY - CONF

T1 - Contracting strategy based on Markov process modeling

AU - Park, Sunju

AU - Durfee, Edmund H.

PY - 1996/12/1

Y1 - 1996/12/1

N2 - A strategy to solve the problems of contractors in determining the optimal payment of a contract is presented. It is a four-step contracting strategy for computing probability of success, failure and payoffs of accomplishing a contract. First step is modeling future contracting process stochastically as a Markov process (MP). After the contract has been modelled, transition probabilities between MP states are then computed. The probability of success and failure, and the payoff of a contract can now be computed based on MP theory. Finally, the contractor uses a simple generate-and-test to find the optimal payment for the contract.

AB - A strategy to solve the problems of contractors in determining the optimal payment of a contract is presented. It is a four-step contracting strategy for computing probability of success, failure and payoffs of accomplishing a contract. First step is modeling future contracting process stochastically as a Markov process (MP). After the contract has been modelled, transition probabilities between MP states are then computed. The probability of success and failure, and the payoff of a contract can now be computed based on MP theory. Finally, the contractor uses a simple generate-and-test to find the optimal payment for the contract.

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UR - http://www.scopus.com/inward/citedby.url?scp=0030373767&partnerID=8YFLogxK

M3 - Paper

AN - SCOPUS:0030373767

ER -