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Understanding the development of fundamentalism

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  • Gil Epstein
  • Ira Gang

Abstract

Fundamentalist organizations and the terrorists they spawn do not arise of a vacuum. Combating terrorism requires understanding the principles of groups’ formation, development and growth. We use economic theory to explain the creation and development of fundamentalist groups. In this paper we develop a theory of fundamentalism and terrorism under which leaders compete to enhance the level of observance of their followers. Our model explains the existence of competing fundamentalist groups and the increase in their intensity over time. Competition among fundamentalists makes them more extreme and may lead to terrorist activity.
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Suggested Citation

  • Gil Epstein & Ira Gang, 2007. "Understanding the development of fundamentalism," Public Choice, Springer, vol. 132(3), pages 257-271, September.
  • Handle: RePEc:kap:pubcho:v:132:y:2007:i:3:p:257-271
    DOI: 10.1007/s11127-007-9150-4
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    References listed on IDEAS

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    9. Laurence R. Iannaccone, 1997. "Toward an Economic Theory of "Fundamentalism"," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(1), pages 100-100, March.
    10. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 271-291, April.
    11. Dwight Lee & Todd Sandler, 1989. "On the optimal retaliation against terrorists: The paid-rider option," Public Choice, Springer, vol. 61(2), pages 141-152, May.
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    Cited by:

    1. Correani, Luca & Di Dio, Fabio & Garofalo, Giuseppe, 2009. "The evolutionary dynamics of tolerance," MPRA Paper 18989, University Library of Munich, Germany.
    2. Alam Khan, 2018. "How does terrorism measurement matter of state-level of a country? Evidence from Islamic countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(2), pages 883-898, March.
    3. Fan, Jijian & Friedman, Daniel & Gair, Jonathan & Iyer, Sriya & Redlicki, Bartosz & Velu, Chander, 2021. "A simulation study of how religious fundamentalism takes root," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 465-481.
    4. Cerqueti, Roy & Correani, Luca & Garofalo, Giuseppe, 2013. "Economic interactions and social tolerance: A dynamic perspective," Economics Letters, Elsevier, vol. 120(3), pages 458-463.
    5. S. Brock Blomberg & Gregory D. Hess & Akila Weerapana, 2004. "An Economic Model of Terrorism," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(1), pages 17-28, February.
    6. Robbert Maseland & André Hoorn, 2011. "Why Muslims like democracy yet have so little of it," Public Choice, Springer, vol. 147(3), pages 481-496, June.
    7. Arce, Daniel G. & Sandler, Todd, 2009. "Fitting in: Group effects and the evolution of fundamentalism," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 739-757, September.
    8. Thierry Deffarges, 2003. "Sur la nature et les causes du terrorisme. Une revue de la littérature économique," Revue Tiers Monde, Programme National Persée, vol. 44(174), pages 369-392.
    9. Friedman, Daniel. & Fan, Jijian. & Jonathan Gair & Sriya Iyer & Bartosz Redlicki & Chander Velu, 2016. "How Fundamentalism Takes Root: A Simulation Study," Cambridge Working Papers in Economics 1681, Faculty of Economics, University of Cambridge.
    10. Patrick Mardini, 2015. "The Endangered Classical Liberal Tradition in Lebanon: A General Description and Survey Results," Econ Journal Watch, Econ Journal Watch, vol. 12(2), pages 242–259-2, May.

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    More about this item

    Keywords

    Fundamentalism; Rent-seeking; Religion;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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