Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20501 
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion Papers No. 1237
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We examine who benefits when there is a strong leader in place, and those who benefit when a situation lacks a proper leader. There are fractious terrorist groups who seek to serve the same people in common cause against a common enemy. The groups compete for rents obtained from the public by engaging in actions against the common enemy. We derive a condition under which the concerned parties, the terrorist groups and the local population upon whom the terrorist groups inflict their actions, benefit or lose in the two scenarios, and examine the consequences of counter-terrorist policy.
Subjects: 
terrorism
rent-seeking
all-pay auction
lottery
JEL: 
D72
D71
D74
Document Type: 
Working Paper

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