We use economic theory to examine the intensity of fundamentalist sects. Leaders work to enhance their followers? observance level. We model three stylized situations under which fundamentalist groups function, examining the intensity of observance in each. We find that, under reasonable...

Fundamentalist organizations and the terrorists they spawn do not arise of a vacuum. Combating terrorism requires understanding the principles of groups’ formation, development and growth. We use economic theory to explain the creation and development of fundamentalist groups. In this paper we...