We examine the determinants of cooperation and the effectiveness of deterrence when fear is a motive for conflict. We contrast results obtained in a complete information setting with those obtained in a setting with strategic risk, where players have different information about their...

This article characterizes optimal policy when a government uses indirect control to exert its authority. We develop a dynamic principal-agent model in which a principal (a government) delegates the prevention of a disturbance--such as riots, protests, terrorism, crime, or tax evasion--to an...