Non-convexities and the gains from concealing defenses from committed terrorists
How should countries defend against committed terrorists who attack until defeated? We identify a fundamental non-convexity--one only needs to defeat the terrorist once. Consequently, provided a country values targets similarly, it should conceal defenses and allocate defense resources randomly.
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- Lakdawalla, Darius & Zanjani, George, 2005.
"Insurance, self-protection, and the economics of terrorism,"
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321307000000000158, UCLA Department of Economics.
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