Deterrence, Preemption and Panic: A Common-Enemy Problem of Terrorism
AbstractWe develop a game-theoretic analysis of terrorism that examines the interaction between a terrorist organization and multiple target countries, and considers both pre-emption and deterrence as counter-terrorist policies. The damage from terror includes not only the material cost of fatality, injury and loss of property, but also the resultant fear. The fear-effect leads to different kinds of equilibria and implications for counter-terrorism policies. In particular, the model identifies conditions under which greater pre-emption may be the rational response to an increase in terrorism, i.e., it analyzes the merit of the dictum: ``offense is the best defense.'' Further, it examines the characteristics of cooperative behavior among target countries in dealing with the threat of terrorism.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8223.
Date of creation: 2008
Date of revision:
Other versions of this item:
- Satya P. Das & Prabal Roy Chowdhury, 2014. "Deterrence, Preemption, And Panic: A Common-Enemy Problem Of Terrorism," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 52(1), pages 219-238, 01.
- Satya P. Das & Prabal Roy Chowdhury, 2008. "Deterrence, preemption and panic: A Common-enemy problem of terrorism," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers, Indian Statistical Institute, New Delhi, India 08-04, Indian Statistical Institute, New Delhi, India.
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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