Document Type

Working Paper

Date of This Version

12-1-2004

Keywords

rational choice model, income and substitution effects, Slutsky equation, game theory, prisoners’ dilemma

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.

Working Paper Number

0412

Included in

Economics Commons

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