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....

We consider conflicts between an incumbent, e.g. government or dominant firm, and potential challengers, e.g. guerilla movement or entrants. It is not uncommon for challengers to win such conflicts despite their lack of resources. They can do this by exploiting a second mover advantage: choosing...

Arms races – enduring rivalries between pairs of hostile powers, which prompt competitive acquisition of military capability – appear to be a pervasive phenomenon. From the past Cold War competition, between the US and the USSR, to present regional antagonisms, such as India and Pakistan,...

This paper presents a game-theoretic model of suicide terrorism containing three agents: the terrorist leader; a targeted government; and potential terrorist supporters. Supporters join the terrorist group if they gain more from their participation than from their economic opportunities....

This article puts forth collection action as a unifying theme for the conference essays on arms trade, control, and production. For each of these topics, collective action failures are related to group size and group composition considerations. Other issues are also examined including the manner...