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Manufacturing mayhem: the violence entrepreneurs of the US firearms industry

Topher L. McDougal

Chapter 12 in Handbook of Research on Entrepreneurship and Conflict, 2024, pp 209-225 from Edward Elgar Publishing

Abstract: The United States firearms industry provides perhaps the most important global example of entrepreneurship linked to conflict due to its size and innovation, its destructiveness, and the data available allowing its study. This paper argues that the industry thrives in environments characterized by good governance, though its products also undermine those same environments. We present a simple formal microeconomic model of the firearms market characterized by innovation (supply-side) and negative externalities driving future demand (demand-side). The results indicate the existence of both high- and low-security pooling equilibria. The applicability of the model and its policy implications are discussed.

Keywords: Business and Management; Economics and Finance; Politics and Public Policy General Academic Interest (search for similar items in EconPapers)
Date: 2024
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