The Interplay Between Preemptive and Defensive Counterterrorism Measures: A Two‐stage Game
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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Volume (Year): 78 (2011)
Issue (Month): 311 (07)
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References listed on IDEAS
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.:
- 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.
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Springer, vol. 128(1), pages 245-255, July.
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- Vicki Bier & Santiago Oliveros & Larry Samuelson, 2007.
"Choosing What to Protect: Strategic Defensive Allocation against an Unknown Attacker,"
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Association for Public Economic Theory, vol. 9(4), pages 563-587, 08.
- 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.
- 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.
- repec:cup:cbooks:9780521616508 is not listed on IDEAS
- Sandler, Todd & Arce, Daniel G., 2007. "Terrorism: A Game-Theoretic Approach," Handbook of Defense Economics, Elsevier.
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