Considered here is an arms race in which weapons production exhibits increasing returns to scale technology that stems from the increasing importance of information, electronics, computers, software, etc. in modern weapons systems. Just as in general equilibrium theory, increasing returns to...

Treaties to limit strategic arms, such as those resulting from the Strategic Arms Limitation Talks (SALT), are generally viewed as resulting in a reduced level of military spending and an increased level of security for both countries. This paper shows that such treaties generally would...