Journal or Book Title
The American Economic Review
First Page or Article ID Number
We use economic analysis in a simple game-theory framework to ascertain under what circumstances a government would want to precommit itself to a no-negotiation strategy. From the government viewpoint, we examine both the choice of deterrence expenditure (i.e., expense meant to reduce terrorist logistical success during incidents) and whether to negotiate or not.
American Economic Association
Lapan, Harvey E. and Sandler, Todd, "To Bargain or Not To Bargain: That Is The Question" (1988). Economics Publications. 151.