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The purpose of this study is to define the interactions that determine how secure a society is from terrorism and to propose a method for measuring the threat of terrorism in an objective and spatio-temporally comparable manner.

Game-theoretic analysis of the determinants of security and discussion of how to implement these interactions into a measure of security.

We show that governments concerned with popularity have an incentive to over-invest in security and that, in certain situations, this leads to a deterioration in net security position. Our discussion provides an implementable means for measuring the levels of threat and protection, as well as individuals’ perceptions of both, which we propose can be combined into an objective and scientific measure of security.

The implication for researchers is the suggestion that efficiency, as well as scale of counter-terrorism, is important in determining a country’s overall security position. Furthermore, we suggest that individuals’ perceptions are at least as important in determining suitable counter-terrorism policy as objective measures of protection and threat. The limitations of this research are found in the vast data requirements that any attempt to measure security will need.

We propose the first method for objectively measuring the net security position of a country, using economic and econometric means.

There is a substantial body of research on the calculation of the costs of conflict, but so far no satisfactory methodology has been proposed that is able to combine all potential channels in one single analysis. This chapter uses the existing literature and its problems to propose a methodology for doing so.

The specific problems addressed in this study include the measurement of welfare, the imputation of missing data, the validity of the econometric techniques used in the estimation of conflict costs, the differentiation of existing conflict databases, and the possibility of both direct and nondirect effects. These challenges are described in detail in this chapter and a comprehensive methodological road map is proposed to be able to estimate the global economic costs of conflict. This contribution is an important continuation of our research agenda with regard to the calculation of the global economic costs of conflict.

Raul Caruso, educated in Naples, Leuven and Milan, is currently senior researcher at the Institute of Economic Policy, Università Cattolica del Sacro Cuore (Italy) where he is also serving as adjunct professor of international economics. He is also visiting professor at Warsaw University (Poland). He has also been visiting professor at Massachusetts Institute of Technology (MIT) (USA), Hiroshima University (Japan), Kazakh Humanitarian Law University (Kazakhstan) and Novosibirsk State University (Russian Federation). His main research interests are peace economics, international political economy, economics of crime and sport economics. He has published on contest theory, sport economics, economic interpretation of terrorism, economic causes of wars and international economic sanctions. He is the executive coordinator of Network of European Peace Scientists (NEPS). He is also editor in chief of Peace Economics, Peace Science and Public Policy.

The study of war and peace is nowadays becoming a complex topic drawing from different disciplines and applying different methodologies. This book collects 10 studies on conflict and its pernicious consequences. The appropriate scientific field for this set of studies is the peace economics as defined in Isard (1994), Arrow (1995) and Caruso (2010). In particular, Peace Economics is a sub-field of Peace Science and it is generally concerned with (1) the economic determinants of actual and potential conflicts; (2) the impact of conflict on welfare and on the economic behaviour of societies; (3) the use of economic measures to cope with and control conflicts whether economic or not. Central to this field are analyses of conflicts amongst nations, regions and other communities of the world; measures to control (deescalate) arms races and achieve reduction in military expenditures; programmes and policies to utilize resources thus released for more constructive purposes. Put briefly, the main object of peace economics is the study of conflict and conflict resolution in different forms. In particular, the contents of this book are mainly on the positive ‘side’ of Peace Economics, which emphasizes the study of conflict and its consequences. In particular, in the recent years, a growing economic literature has uncovered both the economic determinants and consequences of actual intra-state conflicts. This book is intended to be a contribution to this literature. It gathers both theoretical and empirical contributions.

This study aims to investigate how the home country institutional development influences the alliance formation process.

A network of strategic alliances between 95 airlines over a 5-year period is analyzed with stochastic actor-oriented models [i.e. Simulation investigation for empirical network analysis (SIENA)]. Robustness analyses use a subsample of these airlines over a period of 10 years.

The results demonstrate that the membership in a firm group and a high share of state ownership are more beneficial for the number of alliances if the firm originates from a country with low institutional development.

Firms from less developed countries can use affiliations (e.g. to firm groups or the government) as signals to attract international alliance partners.

Policymakers from less developed countries should support the development of (local) firm groups to stimulate interorganizational cooperation.

Firms form alliances based on two aspects: preferences for alliance partners and attractiveness to potential partners. Prior studies outlined that institutional development affects the preferences of firms for alliance partners. This study demonstrates how the institutional development influences the attractiveness to potential partners.

This study seeks to explore the key themes in identity play during unemployment and the potential obstacles faced by unemployed individuals.

This qualitative study is based on 23 interviews with unemployed individuals in Germany.

The authors identify three obstacles to identity play during unemployment: a lack of psychological safety to explore possible selves, a lack of opportunity to try out possible selves and a lack of social validation for possible selves. Several interviewees highlight the impact of social context, creating an absence of institutional support and a limited identity “playspace.” As such, the authors illustrate that when faced with these obstacles, the unemployed individuals of this study predominantly focus on identity work instead of identity play. Only a few interviewees seem to engage in and sustain identity play. The authors propose that the elaborate nature of their possible selves and their focus on future opportunities may overshadow the present self and immediate obstacles.

The authors argue that identity play is not readily available to all individuals in all situations. Instead, they suggest that some psychologically and socially threatening contexts such as unemployment are characterized by obstacles that constrain individuals' identity play and prevent the adoption of new work identities. Hence, the authors call for a more balanced and localized understanding of identity play.