| Abstract: | This paper describes the construction of a mathematical model structure in a particular area of management. In addition it is intended as an illustration of how appropriate levels of mathematics can be utilized in management research when original formulations lack sufficient precision for conducting quantitative analyses. The specific area studied deals with the formulation and analysis of contract types. In particular the award fee type contract is treated. At present mathematical structure models for other contract types have received considerable attention, but award fee types have not been structured in mathematical terms. The paper provides a discussion of model formulation for award fee contracts, develops a detailed example of such a structure, and illustrates that model by numerical examples indicating the application of such models to the formulation and analysis of award fee contracts. |
