Alliances Among Asymmetric Countries
AbstractWe examine alliances between asymmetric countries. We find that the results depend on the nature of the equilibrium. If the equilibrium is an interior one then, with an increase in asymmetry, the level of the alliance-wide defense good decreases and the divergence between the first best and the equilibrium level of the defense good increases. In the case where the equilibrium involves a corner solution, these results are reversed. It may be argued, however, that the interior equilibrium case is the more relevant one.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Defence and Peace Economics.
Volume (Year): 18 (2007)
Issue (Month): 3 ()
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Other versions of this item:
- Prabal Roy Chowdhury, 2006. "Alliances among asymmetric countries," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 06-04, Indian Statistical Institute, New Delhi, India.
- Roy Chowdhury, Prabal, 2006. "Alliances Among Asymmetric Countries," MPRA Paper 1502, University Library of Munich, Germany.
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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- Richard Cornes & Roger Hartley & Todd Sandler, 1999. "Equilibrium Existence and Uniqueness in Public Good Models: An Elementary Proof via Contraction," Keele Department of Economics Discussion Papers (1995-2001) 99/02, Department of Economics, Keele University.
- Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
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