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An Economic Analysis Of Military Intelligence

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  • Shirley Ho

Abstract

The purpose of this paper is to provide an economic analysis of military intelligence by using the approach in contract theory to understand when a spy will be hired by a country, why a spy will defect, and how the enemy can use a double agent to fight back. Most importantly, we will provide four solutions to this defection problem in a spy contract using related discussions in the economic literature.

Suggested Citation

  • Shirley Ho, 2007. "An Economic Analysis Of Military Intelligence," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 485-493.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:6:p:485-493
    DOI: 10.1080/10242690701197571
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    References listed on IDEAS

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    1. Abreu, Dilip, 1988. "On the Theory of Infinitely Repeated Games with Discounting," Econometrica, Econometric Society, vol. 56(2), pages 383-396, March.
    2. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
    3. Drew Fudenberg & Eric Maskin, 2008. "The Folk Theorem In Repeated Games With Discounting Or With Incomplete Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 11, pages 209-230, World Scientific Publishing Co. Pte. Ltd..
    4. Solan, Eilon & Yariv, Leeat, 2004. "Games with espionage," Games and Economic Behavior, Elsevier, vol. 47(1), pages 172-199, April.
    5. Fudenberg, Drew & Tirole, Jean, 1990. "Moral Hazard and Renegotiation in Agency Contracts," Econometrica, Econometric Society, vol. 58(6), pages 1279-1319, November.
    6. Matsui, Akihiko, 1989. "Information leakage forces cooperation," Games and Economic Behavior, Elsevier, vol. 1(1), pages 94-115, March.
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    Cited by:

    1. Alex Barrachina & Yair Tauman & Amparo Urbano Salvador, 2014. "Entry with Two Correlated Signals," Discussion Papers in Economic Behaviour 0714, University of Valencia, ERI-CES.
    2. D. Thorleuchter & D. Van Den Poel, 2012. "Protecting Research and Technology from Espionage," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/824, Ghent University, Faculty of Economics and Business Administration.

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