Several countries of the world are involved in mutual and collaborative business of military equipments, weapons in terms of their production, sales, technical maintenance, training and services. As a consequence, manufacturing of boms, rockets, missiles and other ammunitions have taken...

The paper characterises the choice rules that can be implemented when agents are unable to commit themselves not to renegotiate the mechanism.

A profit-maximizing monopolist licenses a cost-reducing innovation to downstream firms that compete strategically. Katz and Shapiro (1986) find the seemingly obvious result that "the [monopolist's] incentive to disseminate the innovation typically are too low." Instead, the author finds that the...