Abstract
We analyze a regime change game in which an active defender can invest in costly, unobservable defenses. We show that if there are sufficiently many potential attackers, the game has a unique Nash equilibrium in which the defender chooses to have almost no defenses and attacks almost never occur.
This provides a new perspective on coordination problems and the necessity of refinements in regime change games. (C) 2021 Elsevier Inc. All rights reserved.