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Who Is the Enemy?

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Author Info

  • Ira N. Gang

    ()
    (Rutgers University)

  • Gil S. Epstein

    ()
    (Bar-Ilan University, CEPR, IZA)

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 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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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200427.

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Date of creation: 25 Nov 2004
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Handle: RePEc:rut:rutres:200427

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Related research

Keywords: terrorism; rent-seeking; all-pay auction; lottery;

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References

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  1. Baye, M.R. & Kovenock, D. & De Vries, C., 1992. "The All-Pay Auction with Complete Information," Papers, Pennsylvania State - Department of Economics 8-92-1, Pennsylvania State - Department of Economics.
  2. Ellingsen, Tore, 1991. "Strategic Buyers and the Social Cost of Monopoly," American Economic Review, American Economic Association, vol. 81(3), pages 648-57, June.
  3. Yeon-Koo Che & Ian Gale, 1998. "Caps on Political Lobbying," Microeconomics, EconWPA 9809003, EconWPA.
  4. Claude Berrebi, 2003. "Evidence About the Link Between Education, Poverty and Terrorism Among Palestinians," Working Papers 856, Princeton University, Department of Economics, Industrial Relations Section..
  5. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  6. 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.
  7. Gil Epstein & Shmuel Nitzan, 2006. "Reduced prizes and increased effort in contests," Social Choice and Welfare, Springer, vol. 26(3), pages 447-453, June.
  8. Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993. "Rigging the Lobbying Process: An Application of the All-Pay Auction," American Economic Review, American Economic Association, vol. 83(1), pages 289-94, March.
  9. 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.
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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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