743
Views
9
CrossRef citations to date
0
Altmetric
Original Articles

Terrorist choice: a stochastic dominance and prospect theory analysis

&
Pages 150-164 | Received 06 Jan 2015, Accepted 21 Mar 2015, Published online: 22 Apr 2015

References

  • Anderton, C. H., and J. R. Carter. 2005. “On Rational Choice Theory and the Study of Terrorism.” Defence and Peace Economics 16: 275–282.10.1080/1024269052000344864
  • Atkinson, S. E., T. Sandler, and J. Tschirhart. 1987. “Terrorism in a Bargaining Framework.” The Journal of Law and Economics 30: 1–21.10.1086/jle.1987.30.issue-1
  • Barros, C. P., I. Proença, J. R. Faria, and L. A. Gil-Alana. 2007. “Are USA Citizens at Risk of Terrorism in Europe?” Defence and Peace Economics 18: 495–507.10.1080/10242690701197605
  • Bawa, V. S. 1982. “Research Bibliography—Stochastic Dominance: A Research Bibliography.” Management Science 28: 698–712.10.1287/mnsc.28.6.698
  • Becker, G. S. 1968. “Crime and Punishment: An Economic Approach.” Journal of Political Economy 76: 169–217.10.1086/jpe.1968.76.issue-2
  • Bleichrodt, H., and J. Pinto. 2000. “A Parameter-free Elicitation of the Probability Weighting Function in Medical Decision Analysis.” Management Science 46: 1485–1496.10.1287/mnsc.46.11.1485.12086
  • Braido, L. H. B., and D. Ferreira. 2006. “Options can Induce Risk Taking for Arbitrary Preferences.” Economic Theory 27: 513–522.10.1007/s00199-004-0581-6
  • Brandt, P. T., and T. Sandler. 2010. “What Do Transnational Terrorists Target? Has It Changed? Are We Safer?” Journal of Conflict Resolution 54: 214–236.10.1177/0022002709355437
  • Butler, C. K. 2007. “Prospect Theory and Coercive Bargaining.” Journal of Conflict Resolution 51: 227–250.10.1177/0022002706297703
  • Camerer, C., and T. Ho. 1994. “Violations of the Betweenness Axiom and Nonlinearity in Probability.” Journal of Risk and Uncertainty 8: 167–196.10.1007/BF01065371
  • Ehrlich, I. 1973. “Participation in Illegitimate Activities: A Theoretical and Empirical Investigation.” Journal of Political Economy 81: 521–565.10.1086/jpe.1973.81.issue-3
  • Enders, W., and T. Sandler. 2002. “Patterns of Transnational Terrorism, 1970–1999: Alternative Time–Series Estimates.” International Studies Quarterly 46: 145–165.10.1111/isqu.2002.46.issue-2
  • Enders, W., and T. Sandler. 2005. “Transnational Terrorism 1968–2000: Thresholds, Persistence, and Forecasts.” Southern Economic Journal 71: 467–482.10.2307/20062054
  • Fishburn, P. C. 1964. Decision and Value Theory. New York: Wiley.
  • Frey, B. S., and S. Luechinger. 2003. “How to Fight Terrorism: Alternatives to Deterrence.” Defence and Peace Economics 14: 237–249.10.1080/1024269032000052923
  • Gonzalez, R., and G. Wu. 1999. “On the Shape of the Probability Weighting Function.” Cognitive Psychology 38: 129–166.10.1006/cogp.1998.0710
  • Hadar, J., and W. R. Russell. 1969. “Rules for Ordering Uncertain Prospects.” American Economic Review 59: 25–34.
  • Hanoch, G., and H. Levy. 1969. “The Efficiency Analysis of Choices Involving Risk.” The Review of Economic Studies 36: 335–346.10.2307/2296431
  • Hart, S. 2011. “Comparing Risks by Acceptance and Rejection.” Journal of Political Economy 119: 617–638.10.1086/662222
  • Intriligator, M. D. 2010. “The Economics of Terrorism.” Economic Inquiry 48: 1–13.10.1111/ecin.2010.48.issue-1
  • Kahneman, D., and A. Tversky. 1979. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47: 263–292.10.2307/1914185
  • Landes, W. M. 1978. “An Economic Study of U. S. Aircraft Hijacking, 1961–1976.” The Journal of Law and Economics 21: 1–31.10.1086/jle.1978.21.issue-1
  • Lapan, H. E., and T. Sandler. 1988. “To Bargain or Not Bargain: That is the Question.” American Economic Review Papers and Proceedings of the One-Hundredth Annual Meeting of the American Economic Association 78: 16–21.
  • Levy, H. 1992. “Stochastic Dominance and Expected Utility: Survey and Analysis.” Management Science 38: 555–593.10.1287/mnsc.38.4.555
  • Levy, H., and Z. Wiener. 2013. “Prospect Theory and Utility Theory: Temporary versus Permanent Attitude toward Risk.” Journal of Economics and Business 68: 1–23.10.1016/j.jeconbus.2013.01.002
  • Meyer, J. 1977a. “Further Applications of Stochastic Dominance to Mutual Fund Performance.” The Journal of Financial and Quantitative Analysis 12: 235–242.10.2307/2330432
  • Meyer, J. 1977b. “Choice among Distributions.” Journal of Economic Theory 14: 326–336.10.1016/0022-0531(77)90134-X
  • Pesendorfer, W. 2006. “Behavioral Economics Comes of Age: A Review Essay on Advances in Behavioral Economics.” Journal of Economic Literature 44: 712–721.10.1257/jel.44.3.712
  • Phillips, P. J. 2009. “Applying Modern Portfolio Theory to the Analysis of Terrorism. Computing the Set of Attack Method Combinations from Which the Rational Terrorist Group will Choose in Order to Maximise Injuries and Fatalities.” Defence and Peace Economics 20: 193–213.10.1080/10242690801923124
  • Phillips, P. J. 2011. “Lone Wolf Terrorism.” Peace Economics, Peace Science and Public Policy 17 (1), Article 1.
  • Phillips, P. J. 2013. “How to Fight Terrorism: The Relevance of Qualitative Economics.” Applied Economics Quarterly 59: 197–207.10.3790/aeq.59.3.197
  • Phillips, P. J., and G. Pohl. 2014. “Prospect Theory and Terrorist Choice.” Journal of Applied Economics 17: 139–160.10.1016/S1514-0326(14)60006-4
  • Rosendorff, B. P., and T. Sandler. 2004. “Too Much of a Good Thing?: The Proactive Response Dilemma” Journal of Conflict Resolution 48: 657–671.10.1177/0022002704268278
  • Rothschild, M., and J. E. Stiglitz. 1970. “Increasing Risk: I. A Definition.” Journal of Economic Theory 2: 225–243.10.1016/0022-0531(70)90038-4
  • Rothschild, M., and J. E. Stiglitz. 1971. “Increasing Risk: II. Its Economic Consequences.” Journal of Economic Theory 3: 66–84.
  • Sandler, T. 2011. “New Frontiers of Terrorism Research: An Introduction.” Journal of Peace Research 48: 279–286.10.1177/0022343311399131
  • Sandler, T., and W. Enders. 2004. “An Economic Perspective on Transnational Terrorism.” European Journal of Political Economy 20: 301–316.10.1016/j.ejpoleco.2003.12.007
  • Sandler, T., and J. L. Scott. 1987. “Terrorist Success in Hostage-taking Incidents: An Empirical Study.” Journal of Conflict Resolution 31: 35–53.10.1177/0022002787031001003
  • Sandler, T., J. T. Tschirhart, and J. Cauley. 1983. “A Theoretical Analysis of Transnational Terrorism.” The American Political Science Review 77: 36–54.10.2307/1956010
  • Santifort, C., T. Sandler, and P. T. Brandt. 2013. “Terrorist Attack and Target Diversity: Changepoints and their Drivers.” Journal of Peace Research 50: 75–90.10.1177/0022343312445651
  • Schneider, F., T. Brück, and D. Meierrieks. 2015. “The Economics of Counterterrorism: A Survey.” Journal of Economic Surveys 29: 131–157.
  • Siqueira, K., and T. Sandler. 2006. “Terrorists versus the Government: Strategic Interaction, Support, and Sponsorship.” Journal of Conflict Resolution 50: 878–898.10.1177/0022002706293469
  • Tversky, A., and C. Fox. 1995. “Weighing Risk and Uncertainty.” Psychological Review 102: 269–283.10.1037/0033-295X.102.2.269
  • Tversky, A., and D. Kahneman. 1986. “Rational Choice and the Framing of Decisions.” The Journal of Business 59: S251–S277.10.1086/jb.1986.59.issue-S4
  • Tversky, A., and D. Kahneman. 1992. “Advances in Prospect Theory: Cumulative Representation of Uncertainty.” Journal of Risk and Uncertainty 5: 297–323.10.1007/BF00122574
  • Wu, G., and R. Gonzalez. 1996. “Curvature of the Probability Weighting Function.” Management Science 42: 1676–1690.10.1287/mnsc.42.12.1676

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.