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Feeding Terror! How Bin Laden Rewards Terrorist Groups, An Economic Interpretation

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Author Info
Caruso, Raul
Locatelli, Andrea

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Abstract

The aim of this brief paper is to interpret al Qaeda’s modus operandi in the light of the economic theory of contests. The main idea expressed here is that al Qaeda can be considered as a contest-designer rewarding an indivisible prize. Affiliated groups compete with each other to win the prize. The argument is discussed and some tentative policy prescriptions are presented.

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File URL: http://mpra.ub.uni-muenchen.de/5448/
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File URL: http://mpra.ub.uni-muenchen.de/9466/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5448.

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Date of creation: Oct 2007
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Handle: RePEc:pra:mprapa:5448

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Related research
Keywords: terrorism contest al Qaeda open source reward prize setting.

Find related papers by JEL classification:
D7 - Microeconomics - - Analysis of Collective Decision-Making
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Nti, Kofi O, 1999. " Rent-Seeking with Asymmetric Valuations," Public Choice, Springer, vol. 98(3-4), pages 415-30, March. [Downloadable!] (restricted)
  2. Benny Moldovanu & Aner Sela, 2001. "The Optimal Allocation of Prizes in Contests," American Economic Review, American Economic Association, vol. 91(3), pages 542-558, June. [Downloadable!] (restricted)
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  3. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December. [Downloadable!] (restricted)
  4. Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Blackwell Publishing, vol. 50(2), pages 197-234, June. [Downloadable!] (restricted)
  5. O'Keeffe, Mary & Viscusi, W Kip & Zeckhauser, Richard J, 1984. "Economic Contests: Comparative Reward Schemes," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 27-56, January. [Downloadable!] (restricted)
  6. Nti, Kofi O., 2004. "Maximum efforts in contests with asymmetric valuations," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1059-1066, November. [Downloadable!] (restricted)
  7. Benny Moldovanu & Aner Sela & Xianwen Shi, 2005. "Contests for Status," Discussion Papers 139, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
    Other versions:
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