Chicago political economy: A public choice perspective

George J. Stigler (Ed.), Chicago studies in political economy. Chicago: University of Chicago Press, 1988. Pages xviii + 641.     

On the optimal retaliation against terrorists: The paid-rider option

We examine whether nations, faced with the threat of terrorism, will be motivated to engage in the efficient amount of retaliation against terrorists. We demonstrate that the problem confronting the efforts of nations to achieve an optimal retaliation against terrorists is understated by the traditional free-rider analysis. In particular, nations have the option of actually selling or reducing the public good of retaliation, provided through the efforts of others, by offering safe havens to terrorists in return for the terrorists' pledge to attack elsewhere. This paid-rider behavior is also shown to apply to other public good scenarios.The authors gratefully acknowledge the helpful comments of Gordon Tullock on an earlier draft. Sole responsibility for the paper's content rests with the authors. Todd Sandler's research was supported by a Science and Humanities Research Institute Summer Grant at Iowa State University.     

B. Reviews: general

i. SHADOWS ON THE SAND: THE MEMOIRS OP SIR GAWAIN BELL. By (SIR) GAWAIN BELL. London, C.Hurst/New York, St Martins, 1983. pp.xiv, 258, 2 maps and index. El3.50.

ii. THE SUDAN MEMOIRS OF CARL CHRISTIAN GIEGLER PASHA. Edited by RICHARD HILL. Translated from the German by THIRZA KÜPPER. With a foreword by the Pasha's great‐granddaughter, HEIDI GROHA. Oxford, Oxford University Press (for the British Academy), pp. xxxii, 231, 3 maps, 12 plates. £18.00.

iii. EGYPT IN THE REIGN OF MUHAMMAD ALI. By AFAF LUTFI AL‐SAYYID MARSOT. (Cambridge Middle East Library) Cambridge, Cambridge University Press, 1984. pp.x, 300. £25.00.

iv. URBAN NOTABLES AND ARAB NATIONALISM: THE POLITICS OF DAMASCUS. By PHILIP S. KHOURY. (Cambridge Middle East Library) Cambridge, Cambridge University Press, 1983. pp.153, 2 maps.

v. VICTIMS OF A MAP. Translated by ABDULLAH AL‐UDHARI. London, Al‐Saqi Books, 1984. pp.165. £4.95.

vi. PALESTINE AND MODERN ARAB POETRY. By KHALID A. SULAIMAN. London, Zed Books Ltd., 1984. pp.240. £6.95.

vii. L'ARABIE DU SUD: HISTOIRE ET CIVILISATION. By JOSEPH CHELHOD and others. Paris, Maisonneuve & Larose, 1984. pp.264. 21 illustrations, maps, tables. FF 94.

viii. THE TWO YEMENS. By ROBIN BIDWELL. Harlow (UK), Longman/Boulder (USA), Westview. 1983. pp.350.

ix. BAHRAIN AND THE GULF: PAST PERSPECTIVES AND ALTERNATIVE FUTURES. Edited by JEFFREY B. NUGENT and THEODORE H. THOMAS. London, Croom Helm, 1985. pp.221, 26 tables, 4 figs., bibliography. £16.95.

x. THE ARABS. New Edition. By PETER MANSFIELD. Harmondsworth, Penguin, 1985. pp.510, map, index. £4.95/$6.95.

xi. THE EVOLUTION OF MIDDLE EASTERN LANDSCAPES: AN OUTLINE TO AD 1840. By J.M. WAGSTAFF. London, Croom Helm, 1983. pp.304, 459 maps and figs., 5 tables.

xii. THE GREEK MINORITY OF ISTANBUL AND GREEK‐TURKISH RELATIONS 1918–1974. By ALEXIS ALEXANDRIS. Athens, Centre for Asia Minor Studies, 1983.

xiii. SEX AND SOCIETY IN ISLAM: BIRTH CONTROL BEFORE THE NINETEENTH CENTURY. By B.F.MUSALLAM. (Cambridge Studies in Islamic Civilizations). Cambridge, Cambridge University Press, 1983. pp.ix, 176. £17.50.

xiv. TOWARDS A JUST MONETARY SYSTEM. By MUHAMMAD U. CHAPRA. Leicester (UK), The Islamic Foundation, 1985. pp.292. £10.00 (hardback); £4.75 (paperback).

xv. INSURANCE IN AN ISLAMIC ECONOMY. By MUHAMMAD NEJATULLAH SIDDIQUI. Leicester (UK), The Islamic Foundation, 1985. £5.50 (hardback); £2.00 (paperback).

xvi. PARTNERSHIP AND PROFIT SHARING IN ISLAMIC LAW. By MUHAMMAD NEJATULLAH SIDDIQUI. Leicester (UK), The Islamic Foundation, 1985. pp.111. £6.50 (hardback); £2.25 (paperback).

xvii. THE IMMORTAL ATATURK: A PSYCHOBIOGRAPHY. By VAMIK D. VOLKAN and NORMAN ITZKOWITZ. Chicago‐London, Chicago University Press, 1984. pp.xxv, 374. £34.50.

xviii. TURKEY. MERI REPORT. Compiled by MIDDLE EAST RESEARCH INSTITUTE. London, Croom Helm, 198 3. pp.181. £35.00

xix. BORDER AND TERRITORIAL DISPUTES. Edited by ALAN J.DAY. (A Keesing's Reference Publication). Harlow, Longman, 1982. pp.406, 44 maps. £45.00

xx. ‘IF ONLY MY PEOPLE...’ By IMMANUEL JAKOBOVITS. London, Weidenfeld & Nicolson, 1984. pp.288.

xxi. L'IMPRIMERIE ARABE EN OCCIDENT (XVIe, XVIIe XVIIIe SIÈCLES). By JOSÉE BALAGNA. (Islam & Occident, 2.) Paris, Maisonneuve & Larose, 1984. pp.153. 68F.     

Competitive bidding and states' purchase of services: the case of mental health care in Massachusetts.

Over the past two decades states have significantly increased their use of competitive bidding to purchase health and social services from private agencies. Competitive contracting is thought to facilitate program administration, to reduce costs, and to increase the quality of delivered services. We evaluate these claims in light of Massachusetts' experience with competitive contracting for mental health care. We find that few of the expected benefits are achieved. In practice, supposedly competitive bidding systems often degenerate into administratively complicated negotiations between the state and private monopolies. This results in higher costs and lower quality of services. In light of this negative assessment, three strategies for reform are proposed and evaluated.