Abstract
The prevention of terrorist attacks is an important policy concern for many governments. In democracies, officials also fear the electoral consequences of successful attacks. As a result, counterterrorism policy-making and electoral concerns are tightly intertwined. To understand the implications of this link, I develop a game-theoretic model and show that left-wing incumbents respond to terror threats more aggressively than their right-wing counterparts in order to convince voters that they can be trusted in the fight against terrorism. Terrorist attacks improve right-wing incumbents' reputation, while they worsen the reputation of left-wing incumbents. When the future terror threat is likely to be high, voters ignore right-wing incumbents’ reputation, reelecting them independently of their performance. This bail out effect of a high threat is likely to drive the mixed empirical results on the electoral consequences of terrorist attacks, and explains right-wing incumbents' effort to maintain a climate of fear within the public.
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