The Political Economy of Terrorism: An Institutional and Strategic Analysis with a Case Study of al-Qaeda

Anne Rathbone

Enterprise Hall, 318
November 10, 2005, 07:00 PM to 07:00 PM


The purpose of this research is to gain a greater understanding of the current threat of al-Qaeda through the lens of economic analysis using the tools of both public choice theory and institutional analysis. Both analytic and game theoretic frameworks are employed to gain an operational understanding of the industrial organization of the terrorist group and the choices within the group and among other terrorist organizations. Economics analysis of terrorism is necessary for pursuing effective deterrence and ultimate reduction in the optimal level of terrorism globally. These efforts together suggest radically altered policy prescriptions in combating the threat of terrorism posed by al-Qaeda.