Terrorism and Business
Institute of Empirical Research in Economics Working Paper No. 329
22 Pages Posted: 19 Jul 2007
Date Written: July 2007
Deterrence has been a crucial element in fighting terrorism, both in politics and in rational choice analyses of terrorism. However, there are two strategies that are superior to deterrence. The first one is to make terrorist attacks less devastating and less attractive to terrorists through decentralization. The second one is to raise the opportunity cost - rather than the material cost - for terrorists. These alternative strategies will effectively dissuade potential terrorists. It is here argued that they not only apply to society as a whole but can also usefully be applied by business enterprises.
Keywords: Terrorism, Deterrence, Decentralization, Opportunity Cost, Business, Enterprises
JEL Classification: D74, H56, K42
Suggested Citation: Suggested Citation