Many financial transactions are of a fixed-sum nature, meaning that any improvement in the terms of trade for one party comes at the expense of another party. We model how the sales of trading advantages (e.g., data or collocation services) affect traders' endogenous participation in a market...

This report suggests and justifies a simple approach to arms competitions, wherein arms competitions are viewed as disaggregated competition between pairs of weapons systems for executing mutually incompatible policy goals. This approach is derived from a decision theoretic model of armament...