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Espionage and the optimal standard of the Customs-Trade Partnership against Terrorism (C-TPAT) program in maritime security

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  • Bagchi, Aniruddha
  • Paul, Jomon A.

Abstract

We examine the design of a trusted trader program in the U.S. known as C-TPAT (Customs-Trade Partnership against Terrorism). For this, we consider a game between the government, an importer and a terrorist group. The government provides maritime security using three policies: (i) Standard of the C-TPAT program, that is, the degree of security of the supply chain that is required of a member, (ii) Quality of intelligence about the terrorist group, and (iii) Inspection of Cargo. In equilibrium, the government sets the standard of the program at a level that minimizes congestion. However, the optimal espionage expenditure is less than the level that minimizes congestion. We also endogenously determine the membership size of the program and show that it depends non-monotonically on policies such as the standard of the program or the quality of intelligence. Finally, we examine the impact of parametric changes on these policies.

Suggested Citation

  • Bagchi, Aniruddha & Paul, Jomon A., 2017. "Espionage and the optimal standard of the Customs-Trade Partnership against Terrorism (C-TPAT) program in maritime security," European Journal of Operational Research, Elsevier, vol. 262(1), pages 89-107.
    • Handle: RePEc:eee:ejores:v:262:y:2017:i:1:p:89-107
    DOI: 10.1016/j.ejor.2017.03.014
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    Cited by:

    1. Bagchi, Aniruddha & Paul, Jomon A., 2021. "National security vs. human rights: A game theoretic analysis of the tension between these objectives," European Journal of Operational Research, Elsevier, vol. 290(2), pages 790-805.
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    4. Sushil Gupta & Martin K. Starr & Reza Zanjirani Farahani & Mahsa Mahboob Ghodsi, 2020. "Prevention of Terrorism–An Assessment of Prior POM Work and Future Potentials," Production and Operations Management, Production and Operations Management Society, vol. 29(7), pages 1789-1815, July.
    5. Paul, Jomon A. & Zhang, Minjiao, 2021. "Decision support model for cybersecurity risk planning: A two-stage stochastic programming framework featuring firms, government, and attacker," European Journal of Operational Research, Elsevier, vol. 291(1), pages 349-364.
    6. Pablo Emilio Mora Lozano & Jairo R. Montoya-Torres, 2024. "Global Supply Chains Made Visible through Logistics Security Management," Logistics, MDPI, vol. 8(1), pages 1-39, January.

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