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To Bargain or Not To Bargain: That Is The Question

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  • Lapan, Harvey E.
  • Sandler, Todd

Abstract

We use economic analysis in a simple game-theory framework to ascertain under what circumstances a government would want to precommit itself to a no-negotiation strategy. From the government viewpoint, we examine both the choice of deterrence expenditure (i.e., expense meant to reduce terrorist logistical success during incidents) and whether to negotiate or not.

Suggested Citation

  • Lapan, Harvey E. & Sandler, Todd, 1988. "To Bargain or Not To Bargain: That Is The Question," ISU General Staff Papers 198805010700001154, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198805010700001154
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