This chapter defines defense economics and indicates how it differs from other subfields of economics. The nature and topics of defense economics are presented. A brief history of the field is also reviewed. The current importance of defense economics in the post-cold war era is discussed....

Problems which can only be resolved through international cooperation are increasing. Due to this increase, states cooperate more than ever with each other and with international organizations (IOs) but often insufficiently to solve the problems. When social scientists analyze the potential for...

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...