Game theoretic analysis of maximum cooperative purchasing situations

This article introduces maximum cooperative purchasing (MCP)‐situations, a new class of cooperative purchasing situations. Next, an explicit alternative mathematical characterization of the nucleolus of cooperative games is provided. The allocation of possible cost savings in MCP‐situations, in which the unit price depends on the largest order quantity within a group of players, is analyzed by defining corresponding cooperative MCP‐games. We show that a decreasing unit price is a sufficient condition for a nonempty core: there is a set of marginal vectors that belong to the core. The nucleolus of an MCP‐game can be derived in polynomial time from one of these marginal vectors. To show this result, we use the new mathematical characterization for the nucleolus for cooperative games. Using the decomposition of an MCP‐game into unanimity games, we find an explicit expression for the Shapley value. Finally, the behavior of the solution concepts is compared numerically. © 2013 Wiley Periodicals, Inc. Naval Research Logistics 60: 607–624, 2013     

An Evolving View of Warfare: War and Peace and the American Military Profession

The Western way of warfare has not prepared the US Army or American society for appreciating an approach to national security that does not yield decisive and measurable outcomes. This proclivity may have significant consequences given the changing nature of the international security environment in the twenty-first century. In order to preserve national security and global stability, American strategic thinkers must understand the evolution of the national strategic culture. Then adjustments must be made to deal effectively with the challenges of a changed world order. Rather than limiting the use of force to decisive means and outcomes, the American military profession must be seriously prepared for success in less dramatic stability and support missions.     

Remembering the war of liberation: legitimacy and conflict in contemporary Algeria

The aim of this article is to consider how Algeria's most prized achievement and treasured memory – the FLN's victory over the French in the war of liberation – has helped stimulate and sustain the violence that has blighted the country since independence. It argues that successive governments have propagated a legend of the war that encourages and legitimises rebellion and armed resistance. By celebrating the actions and achievements of a committed band of revolutionaries they have established a precedent whereby it is every citizen's duty to oppose and resist an unjust government. Time and again therefore, insurgent groups like the FFS, MIA, and AIS have justified their actions and won popular support by portraying themselves as the early FLN's natural heir.     

Country survey VI: Australia

Australia is a geographically large country, with the world's longest national coastline to defend, but a relatively small economy of some 17.5 million people. Since World War II, Australia has faced the dilemma of how to structure defence policy in the absence of an identifiable threat. Its policy of self‐reliance aims to permit Australia to conduct defensive operations in the event of low/medium level threats without depending immediately on its allies. This is to be achieved through the technological sophistication of defence equipment, a highly professional but small defence force and local industry support.

The burden of defence, measured as the share of defence outlay in GDP declined from about 3% in 1971–72 to about 2.3% in 1993–94. It has been the Government's policy to encourage the development of local defence‐related industry, in particular in areas such as: electronics/optics; communications and information technology; aerospace; shipbuilding and repair, munitions; and land vehicles. However, defence procurement has a small impact on the Australian economy as a whole.     

The demand for military spending in the peripheral economies of Europe

Research on the factors that determine the level of military expenditure or military burden in countries, suggest that the dynamics of the determinants of military spending will be best understood by case studies of individual countries and studies of groups of relatively homogeneous countries. This paper provides a comparative analysis of three of the EU's peripheral economies - Greece, Portugal and Spain. A simple model based on a general theory of the demand for military spending provides the basis for an investigation of the relative importance of strategic and other social and economic factors for the three countries.     

Country survey XVIII: The two Koreas' defence economy

In this paper we change the structure of the basic conflict model. This makes it possible to found an economic theory of war and peace. Apart from few exceptions there exist no peace equilibria in the related literature of conflict theory. The aim of the paper is to fill this gap, because most parts of the world live in peace. Further we show that negotiations are possible to avoid a war. The main result is that war breaks out only if the distribution of resources and/or the effectiveness of weapons is sufficiently unequal.     

Country survey XVII: New zealand's defence policy

New Zealand's current defence strategy, first expressed in NZ Government (1991), is one of "self-reliance in partnership". We outline the country's defence policy in historical context, examine its current defence expenditure and capabilities, and document the genesis of recent major changes in security policy. We pay particular attention to the role of explicit economic analysis and advice in the formation of these policy changes.