Baliga, Sandeep; Tomas Sj–str–m - In: Review of Economic Studies 71 (2004) 2, pp. 351-369
Two players simultaneously decide whether or not to acquire new weapons in an arms race game. Each player's type determines his propensity to arm. Types are private information, and are independently drawn from a continuous distribution. With probability close to one, the best outcome for each...
