The adverse selection risk of equipment support outsourcing and its prevention strategy

Support outsourcing is the new development of the equipment support ability construction. Support outsourcing is a “double-edged sword”, which brings about many risks despite the enhanced supporting ability. Adverse selection is the risk we must face in the process of signing contract of support outsourcing. This paper deals with the principle of mechanism to prevent the risk of adverse selection in the process of equipment support outsourcing, and gives a kind of mechanism design with the view of optimization to the payment structure.