This paper presents an economic analysis of the choices made by lone wolf terrorists. Using RAND-MIPT data about the fatalities that are inflicted by different attack methods, the paper develops an analysis on a foundation of orthodox utility theory and Markowitz-Tobin approximations. This...

We interpret bitcoin’s 200-day moving average (MA) price as a prospect theory (PT) reference point. PT says that risk preferences “toggle” around the reference point. Above the reference point, investors are risk averse. Below the reference point, investors are risk seeking. Degrees of...

We study terrorist choice from the perspective of economics and psychology. Using RAND-MIPT data about the injuries and fatalities inflicted by different terrorist attack methods, we compute sets of preference orderings over the attack methods using prospect theory. This incorporates reference...

The paper explores terrorist choice by applying two well-known theoretical frameworks: stochastic dominance and prospect theory. We analyse each pair of attack methods that can be formed from the RAND-MIPT database and the Global Terrorism Database (GTD). Instances of stochastic dominance are...