DP5186 Intelligence Failures: An Organizational Economics Perspective

Author(s): Luis Garicano , Richard A. Posner

Publication Date: August 2005

Keyword(s): organizational economics , intelligence reform , war on terrorism

JEL(s): D2 , D8 , H1 , K0 , L22 , L32

Programme Areas: Industrial Organization , Public Policy

Link to this Page: www.cepr.org/pubs/dps/DP5186.asp

Two recent failures of the United States intelligence system have led to the creation of high-level investigative commissions. The failure to prevent the terrorist attacks of 9/11 prompted the creation of the 9/11 Commission, and the mistaken belief that Saddam Hussein had retained weapons of mass destruction prompted the creation of the Weapons of Mass Destruction Commission. We use insights from organizational economics to analyse the principal organizational issues raised by these commissions.