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Hedgehog (anonymous) meinte am 26. Oct, 09:00:
"an empirically interesting economic application (think government and taxpayer)"
I wonder, though, in the context of your taxpayer vs. government interpretation, what is the interpretation of "stakes"? Is it some kind of campaign money in support of neocon candidates promising to "starve the beast"? It sounds a bit strained, although it's probably just my lack of imagination.
I think the more appropriate interpretation of the JPE 1982 article is the war on terrorism where the "stakes" are the weapons used to "neutralize" terrorists ("vampires"). 

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