In a privatization competition, private contractors bid against an in-house team to perform a governmental function currently performed by the in-house team. The Department of Defense initiated 3,500 privatization competitions from 1978 to 1994, generating annual savings of $1.46 billion. We...

In a privatization competition, private contractors bid against an in-house team to perform a governmental function currently performed by the in-house team. The Department of Defense initiated 3,500 privatization competitions from 1978 to 1994, generating annual savings of $1.46 billion. We...

In a canonical model of military conflict, victory and defeat depend stochastically on the difference of resources deployed by the conflict parties. The present paper offers a comprehensive analysis of that model. The unique Nash equilibrium reflects either (i) peace, (ii) submission, (iii)...