How should countries defend against committed terrorists who attack until defeated? We identify a fundamental non-convexity--one only needs to defeat the terrorist once. Consequently, provided a country values targets similarly, it should conceal defenses and allocate defense resources randomly.

This article analyzes the behavior of an oligopoly of risk-averse insurers that insure many consumers facing identical independent risks; however, the probability of a loss is ex ante not known with certainty. It is shown that there is a continuum of equilibria in the Bertrand game. The most...

We investigate the welfare effects of policies that increase voter turnout in costly voting models. In a generalized costly voting model, we show that if the electorate is sufficiently large, then increasing voter turnout is generically efficient. Increasing turnout in small elections is only...

We analyse the effects of regulations prohibiting the use of information to risk-rate premiums in a life insurance market. New information derived from genetic tests is likely to become increasingly relevant in the future. Many governments prohibit the use of this information, thereby generating...

We introduce a framework of electoral competition in which voters have general preferences over candidatesʼ immutable characteristics (such as gender, race or previously committed policy positions) as well as their policy positions, which are flexible. Candidates are uncertain about the...