Caruso, Raul and Locatelli, Andrea (2007): Feeding Terror! How Bin Laden Rewards Terrorist Groups, An Economic Interpretation.
This is the latest version of this item.
Download (154kB) | Preview
The aim of this brief paper is to interpret al Qaeda’s modus operandi in the light of the economic theory of contests. The main idea expressed here is that al Qaeda can be considered as a contest-designer rewarding an indivisible prize. Affiliated groups compete with each other to win the prize. The argument is discussed and some tentative policy prescriptions are presented.
|Item Type:||MPRA Paper|
|Institution:||Università Cattolica del Sacro Cuore di Milano|
|Original Title:||Feeding Terror! How Bin Laden Rewards Terrorist Groups, An Economic Interpretation.|
|Keywords:||terrorism; contest; al Qaeda; open source; reward; prize setting|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions
|Depositing User:||Raul Caruso|
|Date Deposited:||07 Jul 2008 02:48|
|Last Modified:||22 Feb 2016 11:01|
Arquilla, J. and D. Ronfeldt, eds. 2001. Networks and Netwars: The Future of Terror, Crime and Militancy, Santa Monica: RAND.
Benjamin, D. 2003. “Are the Sparks Catching?” Washington Post, 23 November 2003.
Brams S.J., H. Mutlu, and S.L. Ramirez. 2006. “Influence in Terrorist Networks: from Undirected to Directed Graphs.”, Studies in conflict and Terrorism, vol. 29, No. 7, pp. 703-718.
Caruso R. 2008. “Reciprocity in the Shadow of Threat.” International Review of Economics, vol. 55, No. 1/2, pp. 91-111.
Coll, S. and S. Glasser. 2005. “Terrorists Turn to the Web as Base of Operations.” Washington Post, 7 August 2005.
Cozzens, J. 2005. “Islamist Groups Develop New Recruiting Strategies.”, Jane’s Intelligence Review, February 1.
Dixit, A. 1987. “Strategic Behavior in Contests.” The American Economic Review, Vol. 77, No. 5, pp. 891-898.
Farah, D. and P. Finn. 2003. “Terrorism, Inc.: Al-Qaida Franchises Brand of Violence to Groups across World.” Washington Post, 21 November 2003.
Farley, J. 2003. “Breaking Al Qaeda Cells: A Mathematical Analysis of Counterterrorism Operations (A Guide for Risk Assessment and Decision Making).” Studies in Conflict and Terrorism, Vol. 26, No. 6, pp. 399-411.
Hillman, A. and J.G. Riley. 1989. “Politically Contestable Rents and Transfers.” Economics and Politics, Vol. 1, No. 1, pp. 17-39.
Hoffman, B. 2003. “The Leadership Secrets of Osama bin Laden: The Terrorist as CEO.” Atlantic Monthly, April 2003, pp. 26-27.
Hoffman, B. 2004. “The Changing Face of al-Qaida and the Global War on Terrorism.” Studies in Conflict and Terrorism, Vol. 27, No. 6, pp. 93-104.
International Institute for Strategic Studies. 2004. Strategic Survey 2003/4, Oxford: Oxford University Press.
Kirby A. 2007. “The London Bombers as ‘Self-Starters’: A Case Study in Indigenous Radicalization and the Emergence of Autonomous Cliques”, Studies in Conflict and Terrorism, Vol. 30, No. 5, pp.415-428.
Krebs, V.E. 2002, “Mapping Networks of Terrorist Cells.” Connections, Vol. 24, No. 3, pp.43-52.
Kurth Cronin, A. 2006. “How al-Qaeda Ends. The Decline and Demise of Terrorist Groups.” International Security, Vol. 31, No. 1, pp. 32-39.
Jackson, B. 2006. “Groups, Networks, or Movements: A Command-and-Control-Driven Approach to Classifying Terrorist Organizations and Its Application to Al Qaeda.” Studies in Conflict and Terrorism, Vol. 29, No. 3, pp. 241-262.
Lerner, J. and J. Tirole. 2002. “Some Simple Economics of Open Source.”, The Journal of Industrial Economics, vol. 50, No. 2, pp. 197-234.
Meade, J.E., 1952. “External Economies and Diseconomies in a Competitive Situation”, The Economic Journal, Vol. 62, No. 245, pp. 54-67.
Moldovanu, B. and A. Sela. 2001 “The Optimal Allocation of Prizes in Contests.” American Economic Review. Vol. 91, No. 3, pp. 542-558.
Moldovanu, B., A. Sela, and X. Shi. 2007. “Contests for Status.” Journal of Political Economy, Vol. 115, No.2, pp. 338-363.
Nti, K. 1999. “Rent-Seeking with Asymmetric Valuations.” Public Choice, Vol. 98, pp. 415-430.
Nti, K. 2004. “Maximum Efforts in Contests with Asymmetric Valuations.” European Journal of Political Economy, Vol. 20, pp. 1059-1066.
O’Keeffe, M., K. Viscusi and R. Zeckhauser. 1984. “Economic Contests: Comparative Reward Schemes.” Journal of Labor Economics, Vol. 2, No. 1, pp. 27-56.
Robb, J. 2007, Brave New World: The Next Stage of Terrorism and the End of Globalization, San Francisco: John Wiley & Sons.
Rohner D., Frey B.S., 2007, Blood and Ink! The Common-interest-game between terrorist and the media, “Public Choice”, Vol. 133, pp. 129-145.
Rosen, S. 1986. “Prizes and Incentives in Elimination Tournaments.” The American Economic Review, Vol. 76, No. 4, pp. 701-715.
Sageman, M, 2004. Understanding Terror Networks. Philadelphia: University of Pennsylvania Press.
Sageman, M, 2008. Leaderless Jihad. Terror Networks in the Twenty-First Century. Philadelphia: University of Pennsylvania Press.
Tullock, G. 1980. “Efficient Rent Seeking”, pp. 97-112 in J. Buchanan, R. Tollison and G. Tullock, eds. Toward a Theory of the Rent-seeking Society. College Station (TX): Texas A&M University.
Wilkinson, P. 2000. Terrorism Versus Democracy: The Liberal State Response. London: Frank Cass.
Available Versions of this Item
Deadly Contests An economic note on al Qaeda’s reward system. (deposited 26 Oct 2007)
- Feeding Terror! How Bin Laden Rewards Terrorist Groups, An Economic Interpretation. (deposited 07 Jul 2008 02:48) [Currently Displayed]