Citation

Mantin B, Tishler A. Def. Peace Econ. 2004; 15(5): 397-419.

Copyright

(Copyright © 2004, Informa - Taylor and Francis Group)

DOI

10.1080/1024269042000219323

PMID

unavailable

Abstract

This paper models the interactions between the defense needs of the USA and Western Europe, which produce several heterogeneous defense goods, and the defense industry market structure. The results show that net defense costs of the USA and Europe are lower when the number of defense firms in each arms-producing country is small and when the world prices of the defense goods are high. The model predicts that the increase in world prices will crowd-out countries in the developing world from the market for modern weapon systems and may force them to develop and use 'cheap and dirty' weapon systems.