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Notes: Sophisticated locational analysis should no longer proceed without examining (1) the feasibility of reducing uncertainty about the size and spatial spread of the market, prices and other elements and (2) the practicality of information generation through sampling. The present paper points out the methodology for Hotelling-, Weberian- and von Thünen- type location problems by examining simplified situations.

Notes: In this part we wish to present a short, but compact survey of the main strands of thought in the literature on peace economics up to 1992. A more detailed and thorough survey requires a book-length manuscript currently being written.There are many ways in which this survey can be organized. One way would address first the question of why there is conflict, proceed to the identification of specific economic factors generating or lying behind conflicts, hone into the consequent phenomena of military expenditures and arms races, perhaps then investigate the interplay of economic factors in specific conflicts (including those leading to major unrest, wars, revolutions and terrorism), examine the basis for arms control, and finally at all stages probe into the manifold direct and indirect effects (the impact) of arms escalation, control and disarmament.To proceed in this way, however, is not very useful. The literature on peace economics is "helter skelter," appearing in diverse journals and books without adhering to any semblance of organization. Hence we choose to present first some general conceptual materials to help identify the myriad of forces and problems that have been encountered. Then we proceed to survey the literature, for the most part on operational models and hypothesis testing, following the four approaches suggested by economic reasoning that Arrow (chapter 2) uses in treating the economic effects of arms reduction. These are: standard resource allocation theory, macroeconomic stability analysis, modern growth theory, and political economy thinking. We find examination of the literature in this manner at least as good if not better than any other that has been proposed. However, we discuss writings on arms race models and arms control which are the outgrowth of the standard resource allocation problem in a separate section. Also since there are extensive writings on sectoral and regional impacts of military expenditures which employ models derived from both standard resource allocation theory and macroeconomic stability analysis, we add a section on these impacts after the discussion of macroeconomic stability analysis. Finally, we end up with a section on conflict management analysis and procedures, a topic of concern to all social sciences and many professions, and one on which economists have made notable contributions.

Notes: This paper is another one to point up the usefulness of the relative utility approach in conflict management. In this case, it relates to the problem of stalemate. In this approach, each party involved is asked to identify the objectives which it perceives as relevant to it in considering any joint action that might lead to cooperation or tempering of the conflict. From their statements on objectives, cues and insights may be obtained on how to get around their stances on issues - stances (often very heated) that have resulted in the existing stalemate. The objectives, of course, often lie behind the issues. Typically, the greater the disaggregation (the specificity) of each party's objectives, particularly when hierarchically ordered, the more cues and useful insights that can result.Once the objectives of a given party are identified, each party is asked to make pairwise comparisons of its objectives in order to obtain the relative importance of them. When there are logical inconsistences in their pairwise comparisons, this can be brought to the party's attention, and often the party will adjust its statements to eliminate these inconsistences. But even when the party prefers not to do so, their statements can still be very useful. This brings up the point that both art and science are involved in effective mediation and management of conflict. It is, after all, the perceptions of the parties that matter, and not the views and knowledge of the mediator or third party trying to manage a conflict. And if in this way a joint action that leads to cooperation is found acceptable, it does not matter that it is not consistent with scientific knowledge. (Often science is based on logic and rationality that frequently are not characteristic of conflict behavior; and too often science is based on unrealistic assumptions, of which a scientist is often unaware.)Cues and insights that are derived directly or indirectly (even very indirectly) from pairwise comparisons may lead to wild ideas - ideas that observers of the conflict may consider far from reality, nonsensical, impractical, unscientific and the like, and often as failing to address conflict issues directly. This may be so even when the wild idea can be combined effectively with scientific concepts and knowledge to increase the probability of finding useful joint actions. But even by itself, a seemingly wild idea can generate a series of steps, perhaps at first far withdrawn from the issues, which in time is able to break the stalemate and lead to effective cooperation and major reduction, if not elimination, of the conflict.In the Kashmir study we come up with an idea initially viewed as very wild. From discussion with knowledgeable persons and with further thought, this idea was modified and gradually strengthened. We now offer it as a possible approach to joint activity that does not directly attack the Kashmir stalemate but has a real potential to lead to a series of small steps that in toto can help significantly to break this stalemate of long standing.

Notes: For the last few decades, security has become a major issue which threatens human well-being. We, as peace scientists, have tried to develop methods which can cope with international conflicts. The purpose of this paper is to illuminate how some methods developed in Regional Science, namely comparative cost analysis, input-output, industrial complex and others, can be used to help resolve the US-North Korea conflict.North Korea has developed nuclear weapons, which is of great concern to neighboring countries. We suggest steel industry and associated developments in North Korea supported by the neighboring countries can be a full compensation for North Korea's giving up nuclear weapons and will lead North Korea to become deeply involved in the global economy. North Korea's advantages of iron ore, coal, and cheap labor force turn out to be a $55-60 cost advantage per ton of steel over the giant steel companies in South Korea and China. Its steel and related activities could generate at least 70,000 new jobs which will be enough to boost the stagnated North Korean economy to a healthy level.