In the last two decades, terrorism has become a major issue around the world. We analyze a conflict between a terrorist (Terrorist) and a passive defender (Defender) using a simple game theoretical model. Defender is passive as her actions can only influence the costs (damages) when Terrorist...

We use perturbation analysis to study independent private-value all-pay auctions with weakly risk-averse buyers. We show that under weak risk aversion: 1) Buyers with low values bid lower and buyers with high values bid higher than they would bid in the risk neutral case. 2) Buyers with low...

We study contests where several privately informed agents bid for a price. All bidders bear a cost of bidding that is an increasing function of their bids, and, moreover, bids may be capped. We show that, regardless of the number of bidders, if agents have linear or concave cost functions then...