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Understanding the Development of Fundamentalism

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Author Info

  • Ira N. Gang

    ()
    (Rutgers University)

  • Gil S. Epstein

    ()
    (Bar Ilan University)

Abstract

Fundamentalist organizations and the terrorists they spawn do not arise of a vacuum. Combating terrorism requires understanding the principles of groups’ formation, development and growth. We use economic theory to explain the creation and development of fundamentalist groups. In this paper we develop a theory of fundamentalism and terrorism under which leaders compete to enhance the level of observance of their followers. Our model explains the existence of competing fundamentalist groups and the increase in their intensity over time. Competition among fundamentalists makes them more extreme and may lead to terrorist activity.

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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200222.

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Date of creation: 30 Aug 2002
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Handle: RePEc:rut:rutres:200222

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Keywords: fundamentalism; religion; rent seeking; terrorism;

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References

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  1. Ira N. Gang & Gil S. Epstein, 2002. "Government and Cities: Contests and the Decentralization of Decision Making," Departmental Working Papers 200215, Rutgers University, Department of Economics.
  2. Lapan, Harvey E. & Sandler, Todd, 1993. "Terrorism and Signalling," Staff General Research Papers 10808, Iowa State University, Department of Economics.
  3. Daniel G. Arce M. & Todd Sandler, 2003. "An Evolutionary Game Approach to Fundamentalism and Conflict," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(1), pages 132-, March.
  4. Eli Berman, 2000. "Sect, Subsidy, And Sacrifice: An Economist'S View Of Ultra-Orthodox Jews," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 905-953, August.
  5. Iannaccone, Laurence R, 1992. "Sacrifice and Stigma: Reducing Free-Riding in Cults, Communes, and Other Collectives," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 271-91, April.
  6. 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.
  7. Timur Kuran, 1989. "Sparks and prairie fires: A theory of unanticipated political revolution," Public Choice, Springer, vol. 61(1), pages 41-74, April.
  8. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  9. Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
  10. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  11. Laurence R. Iannaccone, 1997. "Toward an Economic Theory of "Fundamentalism"," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(1), pages 100-, March.
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Citations

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Cited by:
  1. Luca CORREANI & Fabio DI DIO & Giuseppe GAROFALO, 2010. "The Evolutionary Dynamics of Tolerance," Theoretical and Practical Research in Economic Fields, ASERS Publishing, vol. 0(2), pages 219 - 231, December.
  2. Robbert Maseland & André Hoorn, 2011. "Why Muslims like democracy yet have so little of it," Public Choice, Springer, vol. 147(3), pages 481-496, June.
  3. Arce, Daniel G. & Sandler, Todd, 2009. "Fitting in: Group effects and the evolution of fundamentalism," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 739-757, September.
  4. Cerqueti, Roy & Correani, Luca & Garofalo, Giuseppe, 2013. "Economic interactions and social tolerance: A dynamic perspective," Economics Letters, Elsevier, vol. 120(3), pages 458-463.

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