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We present a model of transnational terrorism where two countries, home and foreign, face a terrorist threat based in the foreign country. The home country chooses how much to invest in defending itself or in reducing terrorist resources either indirectly by subsidising the foreign country or by...
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counterterrorism. Game theory has been used to examine the interaction among targeted governments, the interface between factions … identifies a host of externalities and their strategic implications for counterterrorism policies. In addition, the chapter … borders). For counterterrorism, we use normal-form games to distinguish proactive from defensive policies. Although both …
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