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In addition, most military products are not pan ofa free market eeonomy due to the govemment's separation from the private seetor. Even if high pcrfonnanee is the primary objcetive, it may be limited by cxtcmul fuetors. Politieal restrietions ean make it impossible to seH businesses that lose money due to unemployment efTeets. Sharcholder reslrietions ean force eompanies to maintain duplielltive facilities or top management positions, as in the ease of EADS (Anselmo. 2005). Low perfonnanee ean bc eommonly due to learning cffcets; aviation eompanics priec thcir aircraft wcll bclow stlltic marginal eosts, which is inconsistcnt with stlltic profit maximizalion, but eOllsistent with dynamie profit maximizlltion (Benkard.

It can be eoncludcd that the probability thaI a budget will changc is mueh larger than lhe probability that il will remain on a nominal path. For an aerospace program to be robust, it must suceessfllily endure any ehanges that may oecllr during the course of devclopment and operation. Understanding the effeels of polilieal domain inslabilities in the fonn of unccrtain future annual budgels on acrospacc programs is, thercfore, of major importance. 7 Performance Measuring the perfonnance ofaerospace organizutions is a ehal1cnge, bccause there afe often many indicators and various viewpoints.

4 Japan The major p[ayers for the eommereia[ space launch sector in Japan are JAXA for research, Ishikawajima Heavy Industries ([Hl) and Mitsubishi Heary Industries (MHI) for developmem and produetion, and H-llA Launeh Serviccs for operation launches. \'carcll) JAXA is the result of the merge between the National Space Dcvelopment Ageney of Japan (NASDA), (he National Aerospaee Laboratory of Japan (NAL), and the Institute of Spaee and Astrommtieul Scienee (1SAS) in 2003. JAXA wem through a drastie re· duction ofstafT, und more focus has sinee been put on the ISS program.

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