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Price competition in a model of arms trade

Garcia-Alonso, Maria D C (1999) Price competition in a model of arms trade. Defence and Peace Economics, 10 (3). pp. 273-303. ISSN 1024-2694. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)

Abstract

This paper presents a model of subsidized military production that examines the relationship between domestic procurement and the arms exports. Weapon producers satisfy the defence procurement in their own country and compete in prices in the international market where weapons are imperfect substitutes for each other. Importers are involved in an arms race situation and do not have domestic military production. The model makes explicit the strategic interaction between governments and firms in the export market. We then analyze the effect of a change in the most significant parameters on the equilibrium. The paper suggests an explanation for the evolution of the arms market in the past few years and highlights the important role of the demand and cost structures

Item Type: Article
Subjects: H Social Sciences
H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Maria Garcia-Alonso
Date Deposited: 29 Jan 2015 17:20 UTC
Last Modified: 29 May 2019 14:09 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/46973 (The current URI for this page, for reference purposes)
Garcia-Alonso, Maria D C: https://orcid.org/0000-0002-4457-3332
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