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Terrorism and the state
[Terrorismus und der Staat]

Author

Listed:
  • Konrad, Kai A.

Abstract

This paper considers terrorism as an extortion activity. It uses tools from the theory of extortion and from conflict theory to describe how terrorism works, why terrorism is a persistent phenomenon, why terrorism is a violent phenomenon, and how retaliation affects the outcome. The analysis highlights the importance of information aspects and discusses some aspects of the organizational design.

Suggested Citation

  • Konrad, Kai A., 2002. "Terrorism and the state [Terrorismus und der Staat]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-15, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmpg:fsiv0215
    as

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    File URL: https://www.econstor.eu/bitstream/10419/51065/1/356220311.pdf
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    References listed on IDEAS

    as
    1. Michelle Slone, 2000. "Responses to Media Coverage of Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(4), pages 508-522, August.
    2. Walter Enders & Todd Sandler, 1996. "Terrorism and Foreign Direct Investment in Spain and Greece," Kyklos, Wiley Blackwell, vol. 49(3), pages 331-352, August.
    3. Sean P. O'brien, 1996. "Foreign Policy Crises and the Resort to Terrorism," Journal of Conflict Resolution, Peace Science Society (International), vol. 40(2), pages 320-335, June.
    4. Walter Enders & Todd Sandler, 2000. "Is Transnational Terrorism Becoming More Threatening?," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(3), pages 307-332, June.
    5. 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.
    6. Kreps, David M. & Wilson, Robert, 1982. "Reputation and imperfect information," Journal of Economic Theory, Elsevier, vol. 27(2), pages 253-279, August.
    7. Walter Enders & Todd Sandler & Gerald F. Parise, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554, November.
    8. Landes, William M, 1978. "An Economic Study of U.S. Aircraft Hijacking, 1961-1976," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 1-31, April.
    9. Lapan, Harvey E. & Sandler, Todd, 1993. "Terrorism and signalling," European Journal of Political Economy, Elsevier, vol. 9(3), pages 383-397, August.
    10. repec:bla:kyklos:v:49:y:1996:i:3:p:331-52 is not listed on IDEAS
    11. Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc.
    12. 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.
    13. Enders, Walter & Sandler, Todd, 2000. "Is Transnational Terrorism Becoming More Threatening? A Time-Series Investigation," Staff General Research Papers Archive 1823, Iowa State University, Department of Economics.
    14. Konrad, Kai A., 2001. "Privacy and time-consistent optimal labor income taxation," Journal of Public Economics, Elsevier, vol. 79(3), pages 503-519, March.
    15. Sandler,Todd & Hartley,Keith, 1995. "The Economics of Defense," Cambridge Books, Cambridge University Press, number 9780521447287, September.
    16. repec:bla:kyklos:v:45:y:1992:i:4:p:531-54 is not listed on IDEAS
    17. Keith Hartley & Todd Sandler (ed.), 1995. "Handbook of Defense Economics," Handbook of Defense Economics, Elsevier, edition 1, volume 1, number 1.
    18. 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.
    19. Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jan Schnellenbach, 2006. "Appeasing nihilists? Some economic thoughts on reducing terrorist activity," Public Choice, Springer, vol. 129(3), pages 301-313, December.

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    More about this item

    Keywords

    Terrorism; extortion; credibility; retaliation; Ismaili;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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