In a model of Coasean bargaining over externalities it is described how agents can manipulate their opponent's reservation utility by strategic actions at a pre-bargaining stage, such as the choice of a pollution technology. This may imply  misallocation of resources, and opening up trade...

This chapter surveys the past applications of game theory to the study of terrorism. By capturing the strategic interplay between terrorists and targeted governments, game theory is an appropriate methodology for investigating terrorism and counterterrorism. Game theory has been used to examine...