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Who is the Enemy?

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Author Info
Epstein, Gil S
Gang, Ira

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Abstract

We examine who benefits when there is a strong leader in place, and those who benefit when a situation lacks a proper leader. There are fractious terrorist groups who seek to serve the same people in a common cause against a common enemy. The groups compete for rents obtained from the public by engaging in actions against the common enemy. We derive a condition under which the concerned parties, the terrorist groups and the local population upon whom the terrorist groups inflict their actions, benefit or lose in the two scenarios, and examine the consequences of counter-terrorist policy.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4524.

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Date of creation: Aug 2004
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Handle: RePEc:cpr:ceprdp:4524

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Related research
Keywords: all-pay auction; lottery; rent-seeking; terrorism;

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Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances

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References listed on IDEAS
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  1. Gil S. Epstein & Shmuel Nitzan, 2002. "Endogenous Public Policy, Politicization and Welfare," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(4), pages 661-677, October. [Downloadable!] (restricted)
  2. Gil Epstein & Shmuel Nitzan, 2006. "Reduced prizes and increased effort in contests," Social Choice and Welfare, Springer, vol. 26(3), pages 447-453, June. [Downloadable!] (restricted)
  3. Che, Yeon-Koo & Gale, Ian L, 1998. "Caps on Political Lobbying," American Economic Review, American Economic Association, vol. 88(3), pages 643-51, June. [Downloadable!] (restricted)
    Other versions:
  4. Lapan, Harvey E. & Sandler, Todd, 2003. "Terrorism and Signalling," Staff General Research Papers 10808, Iowa State University, Department of Economics.
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  5. Arye L. Hillman & John G. Riley, 1987. "Politically Contestable Rents and Transfers," UCLA Economics Working Papers 452, UCLA Department of Economics. [Downloadable!]
  6. Claude Berrebi, 2003. "Evidence About the Link Between Education, Poverty and Terrorism Among Palestinians," Working Papers 856, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  7. Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993. "Rigging the Lobbying Process: An Application of the All-Pay Auction," American Economic Review, American Economic Association, vol. 83(1), pages 289-94, March. [Downloadable!] (restricted)
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  8. Dan Kovenock & Michael R. Baye & Casper G. de Vries, 1996. "The all-pay auction with complete information (*)," Economic Theory, Springer, vol. 8(2), pages 291-305.
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  9. Ellingsen, Tore, 1991. "Strategic Buyers and the Social Cost of Monopoly," American Economic Review, American Economic Association, vol. 81(3), pages 648-57, June. [Downloadable!] (restricted)
    Other versions:
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