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Who Is The Enemy?

  • Gil Epstein
  • Ira Gang

We examine who benefits when there is a strong leader in place, and who benefits 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 determine the leadership structure under which each group is better off, as well as the circumstance that the common enemy prefers. We are able to state simple and general conditions for each group and the common enemy to benefit.

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Article provided by Taylor & Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 18 (2007)
Issue (Month): 6 ()
Pages: 469-484

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Handle: RePEc:taf:defpea:v:18:y:2007:i:6:p:469-484
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  1. 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.
  2. Ellingsen, T., 1990. "Strategic Buyers and the Social Cost of Monopoly," Papers 05-90, Norwegian School of Economics and Business Administration-.
  3. Arye L. Hillman & John G. Riley, 1987. "Politically Contestable Rents and Transfers," UCLA Economics Working Papers 452, UCLA Department of Economics.
  4. Dan Kovenock & Michael R. Baye & Casper G. de Vries, 1996. "The all-pay auction with complete information (*)," Economic Theory, Springer, vol. 8(2), pages 291-305.
  5. Gil Epstein & Shmuel Nitzan, 2006. "Reduced prizes and increased effort in contests," Social Choice and Welfare, Springer, vol. 26(3), pages 447-453, June.
  6. Che, Yeon-Koo & Gale, Ian L, 1998. "Caps on Political Lobbying," American Economic Review, American Economic Association, vol. 88(3), pages 643-51, June.
  7. 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..
  8. 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.
  9. 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.
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