Chapter 3: Deterrence*
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چکیده
How should nations behave to prevent a nuclear first strike? How can incumbent firms prevent the entry of new competitors? The answer lies in the art of deterrence, which, if successful, encourages your opponent to refrain from the unwanted course of action in anticipation of your retaliatory response. Successful deterrence requires persuasion. Your opponent must believe that the costs suffered as a result of your response will outweigh the benefits of his action.
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