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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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, 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 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
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Das Satya P & Lahiri Sajal, 2006. "A Strategic Analysis of Terrorist Activity and Counter-Terrorism Policies," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-28, June.
- Abadie, Alberto & Gardeazabal, Javier, 2008.
"Terrorism and the world economy,"
European Economic Review,
Elsevier, vol. 52(1), pages 1-27, January.
- Gary S. Becker & Yona Rubinstein, 2011. "Fear and the Response to Terrorism: An Economic Analysis," CEP Discussion Papers dp1079, Centre for Economic Performance, LSE.
- Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
- Mirza, Daniel & Verdier, Thierry, 2006.
"International trade, security, and transnational terrorism : theory and empirics,"
Policy Research Working Paper Series
4093, The World Bank.
- Mirza, Daniel & Verdier, Thierry, 2007. "International Trade, Security and Transnational Terrorism: Theory and Empirics," CEPR Discussion Papers 6174, C.E.P.R. Discussion Papers.
- Todd Sandler & Kevin Siqueira, 2006. "Global terrorism: deterrence versus pre-emption," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1370-1387, November.
- B. Hoyer, 2013. "Network Disruption and the Common Enemy Effect," Working Papers 12-06, Utrecht School of Economics.
- Prabal Roy Chowdhury & Jaideep Roy, 2011. "Aid in times of terror," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 11-08, Indian Statistical Institute, New Delhi, India.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.