What is it about?
When a government formulates a counter-terrorism strategy, it communicates information. Some of this information may relate to the costs of terrorism. The analysis of these costs, undertaken on the basis of an analogy between terrorist choice and consumer choice, is the focus of Frey and Luechinger (2003). However, some of this information may relate to the characteristics of terrorism, such as the publicity to be expected from a particular terrorist action. Applying Lancaster's new theory of consumer choice I analyse the ways in which this information may affect terrorist choice and the ways in which the government might manage this information as part of an effective counter-terrorism strategy.
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Why is it important?
The Frey and Luechinger (2003) analysis is a simple but relatively well-known analysis that creates an analogy between terrorist choice and consumer choice. Some of the limitations of this approach can be overcome by applying Lancaster's "new theory of consumer choice". In addition, new insights are generated that are relevant to effective counter-terrorism.
Perspectives
Lancaster's new theory of consumer choice stresses the characteristics of goods rather than the goods themselves. Information about these characteristics is important. This information may be conveyed intentionally or unintentionally by government counter-terrorism initiatives, policies and announcements. The paper provides a richer theoretical alternative to the orthodox consumer choice model that has been applied to the economic analysis of terrorism.
Dr Peter J Phillips
University of Southern Queensland
Read the Original
This page is a summary of: How to Fight Terrorism: The Relevance of Qualitative Economics, Applied Economics Quarterly, September 2013, Duncker & Humblot GmbH,
DOI: 10.3790/aeq.59.3.197.
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