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Taiwan's military procurement issue has obviously generated widespread interest through the media around the world. This paper provides a theoretical foundation and an analytical logic for understanding complex problems of this issue. We analyze the evolution of Taiwan’s military procurement by integrating various actions and interests of the Legislative Yuan and the Executive Yuan via a two-staged sequential game, and suggest that the best strategy for the Administration is to propose a budget bill being recognized by Taiwan's citizens. Some lemmas are also addressed to describe the Administration's interests and the optimal policy for breaking through the deadlock.

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