The Economics of Terrorism

The Economics of Terrorism brings clarity through economic analysis of terrorism and terrorist behaviour with focus on terrorist brutality. The author, an established academic expert, explores economic concepts, including expected utility theory and prospect theory, and applies them to problems that are important in the context of contemporary global terrorism, especially the brutality that so starkly characterises it.

Brutality is the defining characteristic of terrorism. It is despairing to learn that this brutality is the outcome of purposeful, rational, human behaviour. In this purposefulness, however, there lies the key to the interpretation, explanation and understanding of terrorist behaviour. Ultimately, it is in this purposefulness that we shall also find the key to overcoming terrorism. Economic analysis highlights this purposefulness, this rationality, and in doing so provides a different perspective from which to approach the threat of terrorism and the task of pre-empting and pursuing its perpetrators. This book develops this economic perspective within a series of important contexts, each characterised by particular types of terrorist behaviour, choices and strategies.

The Economics of Terrorism brings new insights on how to deal with such challenges as the terrorist group’s choice of attack method and target location, terrorist financing and ‘copycat’ behaviour.