This paper examines experiments on interdependent security prisoner's dilemma games with repeated play. By utilizing a Bayesian hierarchical model, we examine how subjects make investment decisions as a function of their previous experience and their treatment condition. Our main findings are...

Although anti-terrorism policy should be based on a normative treatment of risk that incorporates likelihoods of attack, policy makers’ anti-terror decisions may be influenced by the blame they expect from failing to prevent attacks. We show that people’s anti-terror budget priorities before...