Guha, Brishti - In: Journal of Economic Behavior & Organization 81 (2012) 1, pp. 29-38
patrolling intensity. For a range of parameters, the static model yields multiple equilibria, an “efficient” one with no … patrolling and low piracy, a less efficient equilibrium with intermediate levels of both piracy and patrolling and a highly … inefficient high-patrolling high-piracy equilibrium. Analyzing the dynamic analogue, I obtain the surprising result that …