Baliga, Sandeep; Sjöström, Tomas - In: Journal of Political Economy 116 (2008) 6, pp. 1023-1057
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...