A strategic analysis of the war against transnational terrorism
We study a two stage game in which a transnational terrorist organization interacts with an arbitrary number of countries that may differ in their political or economic power, their military effectiveness, the benefit from cooperating against terrorism and the value they assign to damage. Only a subset of countries that emerges endogenously takes proactive measures to fight the terrorist, while all countries incur defensive expenditures to protect their soil. We characterize analytically the pure strategy subgame perfect equilibrium of the game and show how the equilibrium strategies depend on the key model parameters. We provide an algorithm to find the endogenous set of cooperating countries based on their benefit from cooperation and their political/economic power.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Atkinson, Scott E & Sandler, Todd & Tschirhart, John, 1987. "Terrorism in a Bargaining Framework," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 1-21, April.
- Hausken, Kjell, 2008. "Whether to attack a terrorist's resource stock today or tomorrow," Games and Economic Behavior, Elsevier, vol. 64(2), pages 548-564, November.
- Lapan, Harvey E. & Sandler, Todd, 1993.
"Terrorism and signalling,"
European Journal of Political Economy,
Elsevier, vol. 9(3), pages 383-397, August.
- Lapan, Harvey E. & Sandler, Todd, 1993. "Terrorism and Signalling," Staff General Research Papers Archive 10808, Iowa State University, Department of Economics.
- Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May.
- Lapan, Harvey E. & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That is the Question," Staff General Research Papers Archive 10817, Iowa State University, Department of Economics.
- Enders, Walter & Sandler, Todd, 1995. "Terrorism: Theory and applications," Handbook of Defense Economics,in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 9, pages 213-249 Elsevier.
- B. Peter Rosendorff & Todd Sandler, 2004. "Too Much of a Good Thing?," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(5), pages 657-671, October.
- Sandler, Todd & Enders, Walter, 2004. "An economic perspective on transnational terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 301-316, June.
- de Mesquita, Ethan Bueno, 2005. "Conciliation, Counterterrorism, and Patterns of Terrorist Violence," International Organization, Cambridge University Press, vol. 59(01), pages 145-176, January.
- Joao Ricardo Faria & Daniel Arce, 2005. "Terror Support And Recruitment," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(4), pages 263-273.
- Lee, Dwight R, 1988. "Free Riding and Paid Riding in the Fight against Terrorism," American Economic Review, American Economic Association, vol. 78(2), pages 22-26, May.
- Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers Archive 10818, Iowa State University, Department of Economics. Full references (including those not matched with items on IDEAS)