Arce M., Daniel G.

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Dr. Daniel G. Arce M. is a UT System Regents' Outstanding Teacher and Professor and Program Head of Economics. In 2015 he was awarded an Ashbel Smith professorship. His research interests include: applied game theory, business ethics, collective action, conflict, counterterrorism and global public goods. He has also extensively studied Latin American economies. Find out more about Professor Arce M here.


Recent Submissions

Now showing 1 - 4 of 4
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    On the Samaritan's Dilemma, Foreign Aid, and Freedom
    (MDPI Multidisciplinary Digital Publishing Institute, 2018-10-08) Faria, J. R.; Arce M., Daniel G.; 219516668 (Arce M., DG); Arce M., Daniel G.
    This paper presents an extension of the two-period Samaritan's Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States' recent opening towards Cuba. It is shown that a donor nation's dual concern for economic reforms and greater freedoms can exacerbate the Samaritan's Dilemma, even when economic aid is coupled with targets for freedom. By contrast, a policy that is focused on freedom alone can potentially resolve the Samaritan's Dilemma. Such a policy requires the donor to temper the degree of altruism that motivates its provision of economic aid to the recipient nation. © 2018 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (
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    Malware and Market Share
    (Oxford University Press, 2018-12-26) Arce M., Daniel G.; Arce M., Daniel G.
    This article presents a game-theoretic model of the interaction between malware creators (hackers) and users. Users select and hackers target information technology platforms based upon each platform’s network externalities and security. In equilibrium, a platform’s market share among users and the distribution of malware across platforms are derived endogenously. In particular, a platform’s relative market share is shown to be the square root of the ratio of its competitor’s vulnerability to its own vulnerability. This provides a useful standard for guiding a platform’s security strategy and for characterizing platform competition on the basis of security. It is also consistent with the longstanding empirical folk wisdom that platform leaders must make increasing investments into cybersecurity in order to maintain market share. © The Author(s) 2018. Published by Oxford University Press. All rights reserved.
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    On the Human Consequences of Terrorism
    (Springer, 2018-10-22) Arce M., Daniel G.; 0000 0004 1907 3066 (Arce M., DG; Arce M., Daniel G.
    Terrorist attacks are regarded as low-probability, highly consequential events. What, exactly, are the significant effects of terrorism? This paper presents a cross-sectional depiction of the death and injury profiles for nine of the most violent terrorism tactics: six types of bombings, mass shootings, combined shootings and explosions, and intentional vehicular assaults. By constructing a composite injury and death profile for each tactic under study, terrorist incidents can be ranked in terms of the number of disability adjusted lives lost and disability adjusted life years lost. In addition, the human consequences of terrorism as a whole (on an annual basis) are placed in context relative to the global burden of disease and counterterror expenditures.
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    Experience, Learning, and Returns to Scale
    (Univ North Carolina, 2014-04) Arce M., Daniel G.; 0000 0004 1907 3066 (Arce M, DG); 2006066336 (Arce M)
    The experience curve is a tool for forecasting future decreases in average cost as a function of cumulative output/volume. The extent of an experience effect has profound implications for both pricing strategy and the focus on market share as a managerial objective. At the same time, the underlying sources of the experience effect are not well understood. This article demonstrates that, as commonly measured, experience effects are aggregated with the effects of increasing returns to scale. This, implies that standard experience curve estimates are misspecified because they suffer from an omitted variable bias. Strategic implications of the experience-scale link are discussed.

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