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The Investment Problem in Terrorism

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  • Kai A. Konrad

Abstract

Evidence from early terrorist groups reveals a structural equivalence between extortion and terrorism. This allows us to draw conclusions from the theory of extortion that can be applied to a theory of terrorism concerning the role of repeated play in the viability of extortion. It also enables us to analyse the role of commitment in destroying the extortionary organization. Copyright (c) The London School of Economics and Political Science 2004.

Suggested Citation

  • Kai A. Konrad, 2004. "The Investment Problem in Terrorism," Economica, London School of Economics and Political Science, vol. 71(283), pages 449-459, August.
  • Handle: RePEc:bla:econom:v:71:y:2004:i:283:p:449-459
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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.
    2. Nuno Garoupa & Jonathan Klick & Francesco Parisi, 2006. "A law and economics perspective on terrorism," Public Choice, Springer, vol. 128(1), pages 147-168, July.
    3. Karen Pittel & Dirk Rubbelke, 2006. "What Directs a Terrorist?," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(4), pages 311-328.
    4. Paan Jindapon & William S. Neilson, 2009. "The Impact Of Societal Risk Attitudes On Terrorism And Counterterrorism," Economics and Politics, Wiley Blackwell, vol. 21(3), pages 433-451, November.

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