G2TT
来源类型Discussion paper
规范类型论文
来源IDDP206
DP206 Perfect Equilibrium in a Competitive Model of Arms Accumulation
Frederick van der Ploeg; Aart De Zeeuw
发表日期1987-11-01
出版年1987
语种英语
摘要We consider a model in which two countries are involved in arms accumulation. The West is a decentralized market economy whose government uses optimal taxation to provide a public good, defense. The East is a centrally planned economy. Utility depends on consumption, leisure and defense; defense is a characteristic which is an increasing function of the difference between home and foreign weapon stocks. The cooperative outcome leads to a moratorium on investment in weapons. Two non-cooperative solutions to this differential game are also considered. The first is an open-loop Nash equilibrium solution, which presumes that countries cannot condition their investment in arms on the rival's weapon stocks. The second is a perfect Nash equilibrium solution, which presumes that countries can monitor foreign weapon stocks. The perfect equilibrium solution leads to lower levels of arms and is therefore more efficient, so that a unilateral arms treaty should allow countries to observe their rival's weapon stocks. In other words, verification leads to lower weapon stocks and higher welfare for both countries. The perfect equilibrium solution also provides a more satisfactory strategic foundation for the Richardson equations.
主题International Trade and Regional Economics
关键词Arms accumulation Defense Dynamic games Military spending Monitoring Subgame-perfect equilibrium
URLhttps://cepr.org/publications/dp206
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/529362
推荐引用方式
GB/T 7714
Frederick van der Ploeg,Aart De Zeeuw. DP206 Perfect Equilibrium in a Competitive Model of Arms Accumulation. 1987.
条目包含的文件
条目无相关文件。
个性服务
推荐该条目
保存到收藏夹
导出为Endnote文件
谷歌学术
谷歌学术中相似的文章
[Frederick van der Ploeg]的文章
[Aart De Zeeuw]的文章
百度学术
百度学术中相似的文章
[Frederick van der Ploeg]的文章
[Aart De Zeeuw]的文章
必应学术
必应学术中相似的文章
[Frederick van der Ploeg]的文章
[Aart De Zeeuw]的文章
相关权益政策
暂无数据
收藏/分享

除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。