Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 6

Is it sensible to model the terrorist as wanting to maximize expected damage? Instead, the terrorist may prefer to attack ''high-visibility'' targets, even if this means lower expected damage, or may prefer to maximize the sum of damage plus defense/deterrence expenditures. Which alternative is most plausible? How would these alternatives affect the game?