This thesis explores the utility of market mechanisms for Department of Defense (DOD) command, control, communication and collaboration (C4). Shortfalls in current C4 systems found by the Defense Science Board, Office of Force Transformation, and Command and Control Research Program are presented. Alternative C4 internal market structures that can help achieve the principles of Network-Centric Operations are illustrated. Then, using the principles of mathematical model development, the thesis builds a testable "E-Bay" type model for applying markets in the DOD. The model is not validated or tested in the space of this thesis and should undergo experimentation. Next, this thesis walks through an intelligence use case and presents a number of testable hypotheses for model validation. Two Appendices are included, the first discusses decision making in markets by taking existing decision making tools to show how the cycle of information can be improved for the decision making commander in market transaction space. The second appendix is a briefing that highlights the key points of the Virtual Military Market (VMM) and the intelligence use case. The thesis concludes that "practiced adhocracy" and improved decision making can be achieved by the VMM and that DOD should explore this concept further.

Approved for public release; distribution is unlimited.

http://archive.org/details/virtualmilitarym109452000

Major, United States Air Force