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A prospect theory perspective on terrorism

Author

Listed:
  • Cind Du Bois

    (Professor at Royal Military Academy, Department of Economics, Management & Leadership, Brussels, Belgium.)

Abstract

This paper presents a new approach to the study of terrorist behaviour and argues that a framework based on Prospect Theory can provide novel insights on the understanding of the terrorist mind-set. Such a framework allows different pathways to become a terrorist and although individual decisions are studied, the model also takes into account environmental factors. By changing these environmental factors and/or framing the choice differently, PT also shows how the terrorist group and/or a charismatic leader can influence the individual’s whether or not to turn to terrorism. Having a clear conceptual framework is a first crucial step towards comprehension and in the case of terrorism, towards detection and/or prevention. In this way, the PT framework can also contribute significantly to counter-terrorism policy and can guide the budgetary means in efficient way.

Suggested Citation

  • Cind Du Bois, 2017. "A prospect theory perspective on terrorism," International Journal of Business and Social Research, LAR Center Press, vol. 7(5), pages 1-8, May.
    • Handle: RePEc:lrc:larijb:v:7:y:2017:i:5:p:1-8
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    File URL: https://thejournalofbusiness.org/index.php/site/article/view/1051/655
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    References listed on IDEAS

    as
    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    3. Peter J. Phillips & Gabriela Pohl, 2014. "Prospect theory and terrorist choice," Journal of Applied Economics, Universidad del CEMA, vol. 17, pages 139-160, May.
    4. Nicholas C. Barberis, 2013. "Thirty Years of Prospect Theory in Economics: A Review and Assessment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 173-196, Winter.
    5. van Winden Frans A.A.M. & Ash Elliott, 2012. "On the Behavioral Economics of Crime," Review of Law & Economics, De Gruyter, vol. 8(1), pages 181-213, June.
    Full references (including those not matched with items on IDEAS)

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    Prospect theory; terrorism;

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