Abstract
The proposed anti-terrorist policy has two important advantages over a coercive policy. The whole interaction between terrorists and the government transforms into a positive sum game and the strategy undermines the cohesiveness of the terrorist organisation. Surveying empirical results on the effects of terrorism on the economy and society, Bruno Frey demonstrates the strength of an economic approach to terrorism, which will be of great interest to social and also political scientists, public policy scholars, international relations experts and researchers, and above all, economists. The alternatives to deterrence illustrated in the book are advantageous for the general public and politicians, and the actuality that a positive policy is better than a coercive policy will be of great appeal to educators.
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