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Strategic Ambiguity and Arms Proliferation

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  • Sandeep Baliga
  • Tomas Sjöström

Abstract

A big power is facing a small power that may have developed weapons of mass destruction. The small power can create strategic ambiguity by refusing arms inspections. We study the impact of strategic ambiguity on arms proliferation and welfare. Strategic ambiguity is a substitute for actually acquiring weapons: ambiguity reduces the incentive for the small power to invest in weapons, which reduces the threat of arms proliferation. But strategic ambiguity hides information, and this can lead to costly mistakes. Cheap-talk messages can be used to trigger inspections when such mistakes are particularly costly. Tough messages that trigger inspections always imply a greater risk of arms proliferation. (c) 2008 by The University of Chicago. All rights reserved.
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  • Sandeep Baliga & Tomas Sjöström, 2006. "Strategic Ambiguity and Arms Proliferation," Levine's Bibliography 122247000000001247, UCLA Department of Economics.
    • Handle: RePEc:cla:levrem:122247000000001247
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    Cited by:

    1. Jelnov, Artyom & Tauman, Yair & Zeckhauser, Richard, 2018. "Confronting an enemy with unknown preferences: Deterrer or provocateur?," European Journal of Political Economy, Elsevier, vol. 54(C), pages 124-143.
    2. J. Atsu Amegashie, 2009. "Third-Party Intervention in Conflicts and the Indirect Samaritan's Dilemma," CESifo Working Paper Series 2695, CESifo.
    3. Lang, Matthias & Wambach, Achim, 2013. "The fog of fraud – Mitigating fraud by strategic ambiguity," Games and Economic Behavior, Elsevier, vol. 81(C), pages 255-275.
    4. Yang-Ming Chang & Zijun Luo, 2017. "Endogenous Destruction In Conflict: Theory And Extensions," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 479-500, January.
    5. Joungseok Park, 2016. "The Strategic Manipulation of Asymmetric Climate Conflicts," Working Papers 16-21, Department of Economics, Appalachian State University.
    6. Sandeep Baliga & Tomas Sjostrom, 2013. "Bargaining and War: A Review of Some Formal Models," Korean Economic Review, Korean Economic Association, vol. 29, pages 235-266.
    7. Golosov, Mikhail & Skreta, Vasiliki & Tsyvinski, Aleh & Wilson, Andrea, 2014. "Dynamic strategic information transmission," Journal of Economic Theory, Elsevier, vol. 151(C), pages 304-341.
    8. Florian Ederer & Richard Holden & Margaret Meyer, 2018. "Gaming and strategic opacity in incentive provision," RAND Journal of Economics, RAND Corporation, vol. 49(4), pages 819-854, December.
    9. Long, Iain W., 2015. "Better feared than loved: Reputations and the motives for conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 114(C), pages 46-61.
    10. Milan Zafirovski, 2020. "Indicators of Militarism and Democracy in Comparative Context: How Militaristic Tendencies Influence Democratic Processes in OECD Countries 2010–2016," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 159-202, January.
    11. Nakao, Keisuke, 2019. "Moving Forward vs. Inflicting Costs in a Random-Walk Model of War," MPRA Paper 96071, University Library of Munich, Germany.
    12. Kerwin, Jason & Pandey, Divya, 2023. "Navigating Ambiguity: Imprecise Probabilities and the Updating of Disease Risk Beliefs," IZA Discussion Papers 16478, Institute of Labor Economics (IZA).
    13. Di Maggio, Marco, 2009. "Accountability and Cheap Talk," MPRA Paper 18652, University Library of Munich, Germany.
    14. Nakao, Keisuke, 2019. "Modeling Deterrence by Denial and by Punishment," MPRA Paper 95100, University Library of Munich, Germany.
    15. Nakao, Keisuke, 2022. "Democratic Victory and War Duration: Why Are Democracies Less Likely to Win Long Wars?," MPRA Paper 112849, University Library of Munich, Germany.
    16. Ma, Siyu & Biran, Dov, 2023. "Attacking a nuclear facility: The impact of a noisy intelligence with unknown quality," Games and Economic Behavior, Elsevier, vol. 141(C), pages 472-483.
    17. Sandeep Baliga & Tomas Sjostrom, 2012. "The Strategy of Manipulating Conflict," American Economic Review, American Economic Association, vol. 102(6), pages 2897-2922, October.
    18. Patrick Hummel, 2015. "Strategic ambiguity about military capacity with multiple adversaries," Journal of Theoretical Politics, , vol. 27(2), pages 288-300, April.
    19. Jin Yeub Kim, 2022. "Negotiation statements with promise and threat," Review of Economic Design, Springer;Society for Economic Design, vol. 26(2), pages 149-164, June.
    20. Jelnov, Artyom & Tauman, Yair & Zeckhauser, Richard, 2017. "Attacking the unknown weapons of a potential bomb builder: The impact of intelligence on the strategic interaction," Games and Economic Behavior, Elsevier, vol. 104(C), pages 177-189.
    21. Antonis Adam & Petros G. Sekeris, 2010. "Self-Containment: Achieving Peace in Anarchic Settings," Working Papers 1014, University of Namur, Department of Economics.

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