Competitive analysis of defense acquisition market using the theory on economy of scale

This research starts from the characteristics of defense acquisition market. The different pointviews of the theory on economy of scale were used to analyze a certain extent government control of competition in defense acquisition market, especially in Chinese defense acquisition market which is just in the stage of exploration and transformation. It is concluded that Chinese defense acquisition model should be a combination of government control and market competitiveness according to the characteristics of the country and market rather than blindly chasing the competitive method. We hope that the research can provide valuable reference for the present reform of Chinese defense acquisition market.