This paper proposes an incentive mechanism for transmission expansion planning. The mechanism is a bilevel program. The upper level is a profit-maximizing transmission company (Transco) which expands its transmission system while endogenously predicts and influences the generation investment....

Previous analyses of arms races and proliferation are integrated and extended, building from a treatment of the behavioral foundations of weapons acquisitions to a general theory of arms races, with implications for the role of negotiations, the balance of power, the timing of crises, and...