This study presents an analytical model of budget allocation into military and civilian expenditures within an arms race between two rival countries and compares the consequences of shortsighted (period-by-period) planning versus forward-looking (long-term) planning. The authors show that...

This paper assesses the effect of intermittently renewable energy on generation capacity mix and market prices. We consider two generating technologies: (1) conventional fossil-fueled technology such as combined cycle gas turbine (CCGT), and (2) sunshine-dependent renewable technology such as...

This study presents the methodology, the estimates and a scenario for forecasting the demand for cellular telephones and their use in Israel. The analysis was based on the integration of three sub-models. The estimate of the consumer's decision on whether to purchase a cellular telephone and...

In capacity expansion studies of power generation systems, the uncertainty in the prices of the primary energy resources is a major concern. The approach presented in this paper accounts for this uncertainty by mapping the probability distribution of the installed capacity for any given...

A two-stage game theoretic model is developed in which firms in two producer blocs (the United States and Western Europe) produce a homogeneous defense good and sell it to their own governments and to the rest of the world. The security levels of the two producer blocs depend on their purchase...

Investments in R&D constitute a major share of the expenditures of the hi-tech industry since, generally, they enable firms to successfully compete in the rapidly and constantly changing markets for hi-tech products and services. The role of R&D projects is particularly important in the areas of...

The Handbook on the Economics of Conflict conveys how economics can contribute to the understanding of conflict in its various dimensions embracing world wars, regional conflicts, terrorism and the role of peacekeeping in conflict prevention.

Very tight generation capacity (‘underinvestment’) in competitive electricity markets is a major concern to policymakers. Employing a model with endogenous capacity, capacity mix, operations and with uncertain demand we show that ‘underinvestment’ is due to the rational (non-abusive)...

In Time-of-Use(TOU) pricing schemes, utilities charge rates that depend on the time of day and the season of the year at which electricity is used. Estimates of the effects of TOU rates on business customers in the U.S. and Israel demonstrate that most firms do not appear to respond at all to...