Skip to main content
Log in

Extracting the information: espionage with double crossing

  • Published:
Journal of Economics Aims and scope Submit manuscript

This paper addresses two very old issues in human society: espionage and double crossing. Our major conclusion points out that there will be a serious over rewarding problem in the direct mechanism due to double crossing in espionage, and a competitive mechanism with a relative performance regime can possibly mitigate the over rewarding problem and still extract the information.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Aldrich R (1998) Espionage security and intelligence in Britain 1945–1970. Manchester University Press, Manchester

    Google Scholar 

  • Arensman R (2001). Shedding the trench coat. Electron Bus 27(9): 70–76

    Google Scholar 

  • Cho I and Kreps D (1987). Signaling games and stable equilibria. Q J Econ 102: 179–221

    Article  Google Scholar 

  • Crane A (2005). In the company of spies: when competitive intelligence gathering becomes industrial espionage. Bus Horiz 48(3): 233–240

    Article  Google Scholar 

  • Daughety A and Reinganum J (2005). Secrecy and safety. Am Econ Rev 95(4): 1074–1092

    Article  Google Scholar 

  • Dewatripont M (1989). Renegotiation and information revelation over time: the case of optimal labor contracts. Q J Econ 104(3): 589–619

    Article  Google Scholar 

  • Eichberger J, Grant S and King S (1999). On relative performance contracts and fund manager’s incentives. Eur Econ Rev 43: 135–161

    Article  Google Scholar 

  • Fellings Z (2001). Sleuth on the loose. Black Enterp 32(1): 62

    Google Scholar 

  • Fudenberg D and Tirole J (1990). Moral hazard and renegotiation in agency contracts. Econometrica 58(6): 1279–1319

    Article  Google Scholar 

  • Harris JR (1998) Industrial espionage and technology transfer: Britain and France in the eighteenth century. Ashgate, Aldershot

  • Hart O, Holmstrom B (1987) The theory of contracts. In: Bewley T (ed) Advances in economic theory. Fifth World Congress. Cambridge University Press, London

  • Hart O and Tirole J (1988). Contract renegotiation and Coasian dynamics. Rev Econ Stud 55: 509–540

    Article  Google Scholar 

  • Holmstrom B (1982). Moral hazard in teams. Bell J Econ 13(2): 324–340

    Article  Google Scholar 

  • Holmstrom B and Milgrom P (1990). Regulating trade among agents. J Inst Theor Econ 146: 85–105

    Google Scholar 

  • Kreps D and Wilson R (1982). Sequential equilibria. Econometrica 50: 863–894

    Article  Google Scholar 

  • Laffont JJ and Tirole J (1990). Adverse selection and renegotiation in procurement. Rev Econ Stud 57(4): 597–625

    Article  Google Scholar 

  • Marenches A (1992) The Fourth World War: diplomacy and espionage in the age of terrorism. Morrow

  • Masterman JC (1995) The double-cross system, 1939–1945. Pimlico, London

  • Matsui A (1989). Information leakage forces cooperation. Games Econ Behav 1(1): 94–115

    Article  Google Scholar 

  • Myerson RB (1979). Incentive compatibility and the bargaining problem. Econometrica 47(1): 61–73

    Article  Google Scholar 

  • Rositzke H (1988). The CIA’s secret operations: espionage, counterespionage and covert action. Westview Press, Boulder

    Google Scholar 

  • Sable M (1985). Industrial espionage and trade secrets: an international bibliography. Haworth Press, Binghamton

    Google Scholar 

  • Saywell T (1999). Private investigations. Far East Econ Rev 162(7): 38–40

    Google Scholar 

  • Shulsky A, Schmitt G (2002). Silent warfare: understanding the world of Intelligence, 3rd edn. Brassey’s, Washington, DC

    Google Scholar 

  • Solan E and Yariv L (2004). Games with espionage. Games Econ Behav 47(1): 172–199

    Article  Google Scholar 

  • Whitney ME and Gaisford JD (1999). Why spy? An inquiry into the rationale for economic espionage. Int Econ J 13(2): 103–123

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to S. J. Ho.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ho, S.J. Extracting the information: espionage with double crossing. J Econ 93, 31–58 (2008). https://doi.org/10.1007/s00712-007-0290-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00712-007-0290-2

Keywords

JEL Classifications

Navigation