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Why do governments allow cost follow pricing? Companies should bid a final price and pay for insurance that covers unexpected costs/delays.
by JCharante 2y ago
Why do governments allow cost follow pricing? Companies should bid a final price and pay for insurance that covers unexpected costs/delays.
- vimax 2y agoHow do you expect insurance companies to create actuarial tables for one-off government R&D projects?
- tedunangst 2y agoInsurance companies manage to find ways to price insurance for Hollywood actors storming off set.
- NavinF 2y agoJust estimate the probability of payout. Yes you can do this for non-repeating, hard-to-model events: https://www.astralcodexten.com/p/in-continued-defense-of-non-frequentist https://www.astralcodexten.com/p/in-continued-defense-of-non... I do it all the time without making actuarial tables, as do insurance companies.
- JCharante 2y agoSame way insurance companies insure satellite launches. Lots of guesses and getting another insurance company to underwrite their insurance deals.