In a scenario where terrorist organizations, based in an LDC, target a rich nation, we examine a joint, multi-pronged and dynamic counter-terror strategy and the role that developmental aid plays in its success. We show that aid-tying leads to a fruitful virtuous cycle whereby joint...

We study mechanism design in quasi-linear environments when there are two alternatives. We show that under a mild range condition, every implementable deterministic allocation rule is a generalized utility function maximizer. In unbounded domains, if we replace our range condition by an...