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Why Does the Government Sometimes Decide Not To Inform the Population About an Increased Threat of Terrorism?

Student: Evsyukova Yulia

Supervisor: Konstantin Sonin

Faculty: Faculty of Economic Sciences

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Final Grade: 7

Year of Graduation: 2017

After some terrorist attacks which led to loss of life, the news sources claimed that, to some extent, the government was aware of the plans of the terrorists. However, the state decided not to inform citizens about the increased terrorist threat. What made the government behave in this way, although informing people might have decreased the expected number of victims? The aim of this work is to explain the reason for such a kind of government's decision. Using game-theoretic approach, I build a dynamic model with two agents which are the government and the terrorists and two groups of population that take no actions. I show that the government sometimes do not want to provide access to information about the probability of a terrorist attack, since this might provoke a leak of information to terrorists. As a result, it might decrease chances of the government to catch terrorists.

Full text (added May 14, 2017)

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