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The Interplay Between Preemptive and Defensive Counterterrorism Measures: A Two‐stage Game

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Author Info

  • SUBHAYU BANDYOPADHYAY
  • TODD SANDLER

Abstract

A two-stage game depiction of counterterrorism is presented, where the emphasis is on the interaction between the preemptive and defensive measures taken by two targeted countries facing a common threat. The preemptor is likely to be the high-cost defender with the greater foreign interests. A prime-target country may also assume the preemptor role. The analysis identifies key factors - cost comparisons, foreign interests, and targeting risks - that determine counterterrorism allocations. The study shows that the market failures associated with preemptive and defensive countermeasures may be jointly ameliorated by a disadvantaged defender. Nevertheless, the subgame perfect equilibrium will still be suboptimal owing to a preemption choice that does not fully internalize the externalities.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 78 (2011)
Issue (Month): 311 (07)
Pages: 546-564

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Handle: RePEc:bla:econom:v:78:y:2011:i:311:p:546-564

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References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Atin Basuchoudhary & Laura Razzolini, 2006. "Hiding in plain sight – using signals to detect terrorists," Public Choice, Springer, vol. 128(1), pages 245-255, July.
  2. Vicki Bier & Santiago Oliveros & Larry Samuelson, 2006. "Choosing What to Protect: Strategic Defensive Allocation against an Unknown Attacker," Levine's Bibliography 321307000000000158, UCLA Department of Economics.
  3. repec:cup:cbooks:9780521616508 is not listed on IDEAS
  4. Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers 10818, Iowa State University, Department of Economics.
  5. Sandler, Todd & Arce, Daniel G., 2007. "Terrorism: A Game-Theoretic Approach," Handbook of Defense Economics, Elsevier.
  6. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers 1823, Iowa State University, Department of Economics.
  7. Lee, Dwight R, 1988. "Free Riding and Paid Riding in the Fight against Terrorism," American Economic Review, American Economic Association, vol. 78(2), pages 22-26, May.
  8. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
  9. Kunreuther, Howard & Heal, Geoffrey, 2003. " Interdependent Security," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 231-49, March-May.
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Citations

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Cited by:
  1. Subhayu Bandyopadhyay & Todd Sandler & Javed Younas, 2011. "Foreign aid as counterterrorism policy," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 423-447, July.
  2. Subhayu Bandyopadhyay & Santiago M. Pinto & Christopher H. Wheeler, 2011. "Urban Crime and Labor Mobility," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(3), pages 443-462, 06.
  3. Todd Sandler, 2011. "The many faces of counterterrorism: an introduction," Public Choice, Springer, vol. 149(3), pages 225-234, December.
  4. Bandyopadhyay, Subhayu & Sandler, Todd, 2014. "Immigration policy and counterterrorism," Journal of Public Economics, Elsevier, vol. 110(C), pages 112-123.

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