Policy Seminars

Speaker: Sandeep Baliga
Topic: A Simple Model of Terrorism
Date/Place/Time: Friday, November 21, 2008 1:45PM - 3:15PM
UCLA Anderson School, Entrepreneurs Hall-C303
We study the strategic logic of terrorism.  Suppose there is a large country A facing a small country B.   Country A does not know the fraction of hawks, moderates and doves in country B.  Terrorism serves to signal the population distribution in country B.  When the preferences of the leader A display strategic complementarity, terrorism serves to provoke leader A into an act of aggression.  Only hawks engage in aggression.  When leader A’s preferences display strategic substitutability, terrorism serves to force leader A to reduce aggression.  Both hawks and moderates engage in terrorism. 
Link to paper (if available): N/A