Applying Intermediate Microeconomics to Terrorism

Abstract:     
The authors show how microeconomic concepts and principles are applicable to the study of terrorism. The utility maximization model provides insights into both terrorist resource allocation choices and government counterterrorism efforts, while basic game theory helps characterize the strategic interdependencies among terrorists and governments.

Number of Pages in PDF File: 32

Keywords: Terrorism, rational choice model, income and substitution effects, Slutsky equation, game theory, prisoners' dilemma, chicken, public goods

JEL Classification: A12, A22, C70, D11, D74, H41, H56

working papers series