This paper distinguishes four types of 'Prisoners' Dilemma games - provision, the commons, selfishness, and altruism - based on the public character of benefits and costs. Although each of these four games has the same 2 x 2 ordinal game form, each differs in terms of strategic, dynamic, and...

Using a dynamic panel data framework, we investigate the relationship between the two major forms of terrorism and foreign direct investment (FDI). We then analyze how these relationships are affected by foreign aid flows. The analysis focuses on 78 developing countries for 1984-2008. Our...

This paper presents a model where foreign aid bolsters a developing country's proactive counterterrorism efforts against a resident transnational terrorist group. In stage 1 of the game, the donor country allocates resources to terrorism-fighting tied aid, general assistance, and defensive...

This paper presents a rationalist approach to treaty formation and adherence, where nations are motivated by their self-interest in a strategic framework that accounts for other nations' responses. Key considerations include coordination games, dynamic cooperation, institutional design, and the...

For a standard competitive trade model, the authors show that the incidence of terrorism in different nations can affect the pattern of trade. Nations with a greater incidence of terrorism will export goods that are more immune to terrorism-related disruptions, while importing more...

We present a standard trade model and show that terrorism can be trade inducing, starting from autarky. In addition, terrorism can be shown to be welfare augmenting for a group of nations. Finally, we present some qualitative conditions that identify when a nation's trade volume may rise (or...