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Defensive Weapons and Star Wars: A Supergame with Optimal Punishments

Author

Listed:
  • Giampiero Giacomello

    (Department of Political and Social Studies, University of Bologna, Italy)

  • Luca Lambertini

    (Department of Economics, University of Bologna, Italy; RCEA, Italy)

Abstract

We model the perspective faced by nuclear powers involved in a supergame where nuclear deterrence is used to stabilise peace. This setting allows us to investigate the bearings of defensive weapons on the effectiveness of deterrence and peace stability, relying on one-shot optimal punishments. We find that the sustainability of peace is unaffected by defensive shields if both countries have them, while asymmetric endowments of such weapons have clearcut destabilising consequences.

Suggested Citation

  • Giampiero Giacomello & Luca Lambertini, 2013. "Defensive Weapons and Star Wars: A Supergame with Optimal Punishments," Working Paper series 57_13, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:57_13
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    Keywords

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    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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