The Handbook on the Economics of Conflict conveys how economics can contribute to the understanding of conflict in its various dimensions embracing world wars, regional conflicts, terrorism and the role of peacekeeping in conflict prevention. The economics of conflict is a relatively new branch of the discipline of economics. Conflict provides opportunities for applying game theory involving strategic behaviour, interactions and interdependence between adversaries. The Handbook demonstrates that conflict and its prevention is costly. It considers new dimensions such as ethnic cleansing, destructive power, terrorism, corruption, the impact of new technology, peacekeeping, the role of economists in defence ministries and the use of private contractors in conflict. This unique and comprehensive resource presents a set of original contributions by distinguished experts, providing theoretical, empirical and case-study material. It will prove invaluable for students and researchers interested in defence and peace economics, international relations and strategic studies. Policymakers and defence industry executives will also find this book a fascinating read.