Terrorism and Game Theory: From the Terrorists’ Point of View

This paper investigates the interplay between two distinct terrorist cells of the same terrorist organization using game-theoretic models. It will discuss the economic consequences of terrorism and provide a literature review. Much of the available literature focuses on national policies and the effects such policies have on terrorists’ behavior. The approach taken here differs in that the primary focus is on terrorists’ behavior. By studying decisions terrorists make and understanding why they make them, better counterterrorism policies can be developed.