For almost three decades, economists have applied empirical and theoretical tools to investigate the effectiveness of antiterrorism actions – e.g., the installation of metal detectors and the launch of retaliatory raids. Economic methods have also been applied to gauge the economic consequences of terrorism on economic sectors and the economy as a whole. The current study explains how economic methods and the application of game theory have provided novel counterterrorism insights, not gleaned from other approaches. The study also speculates how neuroeconomics may further inform policymakers on thwarting terrorism.
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