Strategic entry deterrence and terrorism: Theory and experimental evidence
In: Public choice, Band 143, Heft 1-2, S. 3-22
Abstract
Using a two stage rent-seeking framework, we present a simple model of strategic entry/terrorism deterrence and test the model using laboratory experiments. Our contest success function highlights the potential for strategic spillovers. The theory illustrates that, relative to a cooperative outcome, negative externalities lead to over-spending on deterrence and positive externalities lead to under-spending on deterrence. Our experimental results are broadly consistent; subjects in the negative externality treatment had higher expenditures. In contrast to theoretical predictions, participation decisions, while primarily driven by the probability of winning a contest, were influenced by a subject's ability to participate in multiple contests. Adapted from the source document.
Themen
Sprachen
Englisch
Verlag
Springer, Dordrecht The Netherlands
ISSN: 1573-7101
DOI
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