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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, and basic game theory helps characterize the strategic interdependencies among terrorists and governments.
Keywords:chicken game  game theory  income and substitution effects  prisoners' dilemma  public goods  rational choice model  Slutsky equation  terrorism  JEL codes: A12, A22, D74, H56
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