After the fall of the Berlin wall, European governments adopted a hands-off policy towards the defense industrial base, in an attempt to increase the sector’s efficiency and reactivity. In this context, one topical issue is how to motivate defence firms to apply for private rather than public finance. In the paper, the problem is analyzed within the framework of a game between defence firms and banks.
BESANCENOT, D. et VRANCEANU, R. (2006). European Defence Firms: The Information Barrier on Private Finance. Defence and Peace Economics, pp. 23-36.