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Who is the Enemy?

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  • Epstein, Gil S
  • Gang, Ira

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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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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References

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  1. Yeon-Koo Che & Ian Gale, 1998. "Caps on Political Lobbying," Microeconomics 9809003, EconWPA.
  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.
  3. 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.
  4. Kovenock, D. & de Vries, C.G., 1995. "The All-Pay Auction with Complete Information," UFAE and IAE Working Papers 311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. 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.
  6. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  7. Ellingsen, T., 1990. "Strategic Buyers and the Social Cost of Monopoly," Papers 05-90, Norwegian School of Economics and Business Administration-.
  8. Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
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Cited by:
  1. Hendel, Ulrich, 2012. ""Look like the innocent flower, but be the serpent under't": Mimicking behaviour of growth-oriented terrorist organizations," Discussion Papers in Economics 13998, University of Munich, Department of Economics.

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