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On the optimal retaliation against terrorists: The paid-rider option

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Author Info

  • Dwight Lee
  • Todd Sandler

Abstract

We examine whether nations, faced with the threat of terrorism, will be motivated to engage in the efficient amount of retaliation against terrorists. We demonstrate that the problem confronting the efforts of nations to achieve an optimal retaliation against terrorists is understated by the traditional free-rider analysis. In particular, nations have the option of actually selling or reducing the public good of retaliation, provided through the efforts of others, by offering safe havens to terrorists in return for the terrorists' pledge to attack elsewhere. This paid-rider behavior is also shown to apply to other public good scenarios. Copyright Kluwer Academic Publishers 1989

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File URL: http://hdl.handle.net/10.1007/BF00115660
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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 61 (1989)
Issue (Month): 2 (May)
Pages: 141-152

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Handle: RePEc:kap:pubcho:v:61:y:1989:i:2:p:141-152

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Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Richard Kirk, 1983. "Political terrorism and the size of government: A positive institutional analysis of violent political activity," Public Choice, Springer, vol. 40(1), pages 41-52, January.
  2. Landes, William M, 1978. "An Economic Study of U.S. Aircraft Hijacking, 1961-1976," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 1-31, April.
  3. Atkinson, Scott E & Sandler, Todd & Tschirhart, John, 1987. "Terrorism in a Bargaining Framework," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 1-21, April.
  4. Lapan, Harvey E. & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That is the Question," Staff General Research Papers 10817, Iowa State University, Department of Economics.
  5. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
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Cited by:
  1. Gil Epstein & Ira Gang, 2007. "Who Is The Enemy?," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 469-484.
  2. Gil Epstein & Ira Gang, 2007. "Understanding the development of fundamentalism," Public Choice, Springer, vol. 132(3), pages 257-271, September.
  3. Bruno S. Frey & Simon Luechinger, . "Measuring Terrorism," IEW - Working Papers 171, Institute for Empirical Research in Economics - University of Zurich.

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