Optimal deterrence of cooperation

Cooperation beats Deterrence in Cyberwar

This brief article argues for a narrow definition of cyberwar and a technology-centric approach to understanding its strategic implications. Based on a review of the underlying technologies, approaches to facilitating peace in this rather new form of confrontation will be derived. This brief discussion already shows that Cold War era strategies such as credible deterrence through retaliation ar...

Optimal Deterrence and Private International Cartels

and other participants for their constructive comments on this paper. Purdue University is committed to the policy that all persons shall have equal access to its programs and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status or sexual orientation. The focus of this paper is on international...

Optimal policy commitment: investment deterrence versus option value

The consistency and predictability of regulation is thought to be highly important for costly investment decisions. When the government lacks commitment power to maintain a promised policy, and firms are not perfectly competitive, investment levels are typically lower than when the government can commit. However, flexibility in policymaking is beneficial in that it allows for adjustment when co...

Optimal Deterrence and Accidents: To Fleming James, Jr

The dynamics of deterrence.

Because punishment is scarce, costly, and painful, optimal enforcement strategies will minimize the amount of actual punishment required to effectuate deterrence. If potential offenders are sufficiently deterrable, increasing the conditional probability of punishment (given violation) can reduce the amount of punishment actually inflicted, by "tipping" a situation from its high-violation equili...