Prevention and Alleviation of Terrorism Through Socioeconomic Nudges

Abstract

The objective of this paper is to explain how ‘nudge theory’, as formulated by Thaler and Sunstein, can be successfully applied to alleviate the incidence of terrorism. It briefly explains ‘nudge theory’ and associated concepts, provides evidence of its successful application in recent times as well as in the more distant past, and then on the basis of the proven effectiveness of ‘nudges’ in influencing human behaviour, makes certain recommendations for preventing and alleviating terrorism through socio-economic nudges. The recommended nudges, born out of an axiomatic structure and implied dynamics that explain terrorism, include those that promote formation of mixed neighbourhoods by inducing more frequent interactions between members of hitherto hostile socio-economic groups; cultural exchange; and corporate social responsibility fostering the wellbeing of poor communities.

Keywords: nudge theory, terrorism, axioms, prevention, alleviation, policy

JEL Classification: Z11, Z13