The Volokh Conspiracy
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Another Terrible Hostage Deal
The Israel-Hamas ceasefire deal that went into effect today exchanges hundreds of terrorists for 33 Israeli hostages. It will predictably incentivize more hostage-taking and terrorism.

Joe Biden and Donald Trump both claim credit for Israel-Hamas ceasefire deal, which began to be implemented today. I suspect it has more to do with calculations made by the Israelis and Hamas themselves. But in truth, no one deserves credit, because the deal is terrible. The Israelis will release some 1900 terrorists and captured Hamas members in exchange for 33 mostly civilian Israeli hostages (some of whom are not even alive). Many of the terrorists scheduled for release have committed horrific atrocities. Like previous hostage deals with terrorists, this predictably incentivizes future terrorism. You get more of what you reward. Plus, the released terrorists are likely to kill again, as has happened with many of those released in previous deals.
It seems neither the Israeli nor the American backers of this deal have learned the terrible lessons of previous such exchanges. I summarized them in an October 2023 post, which also referenced a 2011 piece, in which I was critiqued the Shalit deal, which was a key factor in leading to the October 7, 2023 attack that started the current war:
The horrific Hamas terrorist attacks against Israel revealed a variety of weaknesses in Israel's security policies, and perhaps those of some other Western nations, too. But one that has not gotten as much attention as it deserves is the folly of hostage deals with terrorists. Hamas leader Yahya Sinwar, the likely mastermind of the [October] attacks, was one of 1027 Palestinian terrorist prisoners released by Israel in 2011, in exchange for a captured Israeli soldier Gilad Shalit. And one of Hamas's motives for the attack was to use the captured hostages to secure the release of other Palestinian terrorists held by Israel…
At the time of the 2011 agreement, Israeli Prime Minister Benjamin Netanyahu's government was widely praised for demonstrating how much it values the lives of its people. I was one of the relatively few critics of the deal….
While it seems I was right to predict that the deal would cost far more innocent lives than it saved, I had no idea of the enormous extent to which this has turned out to be true. With well over 1000 dead, the terrorist attack in which Sinwar played a key role is by far the worst in Israel's history, and one of the worst in the entire history of the world. It is also the biggest anti-Semitic massacre since the Holocaust….
Simple Economics 101 says you get more of the kinds of activities you reward. If you reward hostage-taking, you will predictably incentivize more hostage-taking. Plus, the terrorists you release are themselves likely to go out and commit more acts of terrorism - as Yahya Sinwar did.
I hope this time the lesson will finally be learned. But I fear it will not….
Yahya Sinwar was ultimately killed by Israeli forces last year, but not before he masterminded the October 7 attacks.
Sadly, it seems I was right to worry that the lessons of the Shalit deal and other previous failures would not be learned, even after October 7. The present deal shows it.
And, admittedly, this is not a simple matter of the Israeli government yielding to the US. Polls indicate the deal is highly popular in Israel, backed by a large majority of public opinion. That is probably the main reason why the government agreed to it.
I wrote about the problematic political dynamics of hostage deals in my 2023 post:
[H]ostages currently held by terrorists are very visible to the public, and politicians like [Israeli Prime Minister Bibi] Netanyahu have strong incentives to listen to the anguished pleas of their family and friends. It seems cruel not to!
By contrast, we cannot and do not know the identities of the future hostages whose seizure we incentivize through our deal. Nor can we know the identities of future victims of terrorists released in the deal. In 2011, no one could know the identities of the future victims of Yahya Sinwar. Their families were in no position to lobby government officials to save them.
In the 2023 post, I also recognize that people might dismiss my view because it is not my friends and relatives who are being held hostage:
I realize that… some will reject the above logic on the grounds that I can only say these things because it isn't me or my family who are being held as hostages by Hamas. If it were, maybe I would think differently.
It may well be so. I have never had a friend or family member taken hostage and cannot know what I would do if I did. I have dealt with a number of death threats (most due to my advocacy of migration rights). I chose not to give in…. But the small risk I took was utterly insignificant compared to that endured by hostages held by groups like Hamas.
Still, I would ask those inclined to give in to such emotional considerations to remember that the future hostages seized as a result of the deals we make today also have families who will suffer terrible anguish. The same goes for the families of future victims of terrorists released under those deals. We should strive to reduce the amount of such suffering, not increase it. And that means remembering Econ 101, and learning to say "no" - as the Israelis should have done in 2011.
Eitan Fuld, whose brother Avi was killed by one of the terrorists scheduled to be released in today's deal gets the point:
"The release of Ari's murderer hurts," he said in a statement. "My big problem and for all of us is that of the coming victims and the next families that to our regret will join the bereaved families due to this bad deal."
I realize that my take on this deal aligns with that of far-right Israeli parties who voted against it. I think these parties and and much of their agenda are awful. I have, for example, critiqued their and Netanyahu's plans to undermine judicial review in Israel. I am likewise (to understate the point) no fan of their repressive and discriminatory policies respecting West Bank Palestinians and Israel's Arab minority. But a stopped clock is right twice per day, and this is such a moment.
I am more happy to be in alignment with libertarian-leaning conservative Boston Globe columnist Jeff Jacoby, who has criticized the deal on similar grounds.
Will Israel never learn?
On numerous occasions in the past, Israeli governments have agreed to similarly lopsided exchanges with terrorist organizations like Hamas, Hezbollah, and the Palestine Liberation Organization. Time and again, Israel has paid for the freedom of a few hostages or prisoners of war, or sometimes just their remains, by releasing hundreds of violent prisoners, many of them responsible for the deaths of civilians. Time and again, the newly freed terrorists have picked up where they left off.
As noted above and in my earlier posts on these issues, the Israelis aren't alone in their failure to learn this lesson. Other Western governments, including our own, have all too often made the same types of mistakes.
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Not sure who played a bigger part in this deal (Biden/Trump) but it sucks.
Given we know from several lines of evidence that Biden is mentally checked out of his duties and literally doesn't know what he's signing probably Trump but a better comparison would be Trump vs Biden's puppet masters.
I take it everything including acne was entirely Biden's fault until today. I guess we'll see how the spin works come tomorrow
An open border, Inflation, war, yes. Acne no, unless it can be attributed to worrying about an open border, inflation, and war.
Didn’t Biden brag about his deal during his press conference?
Yup. To the extent that we negotiate with terrorists, it should only be to tell them how much worse off they'll be if they don't stop their terrorism.
Once you pay the Danegeld, you never get rid of the Dane.
Well, back to October 6th.
A nice pretty cease fire will ensure no one else is ever harmed again, right?
At least no one can accuse Jews of being sharp traders again.
I mean really, 100 to one on the prisoner exchange?
Maybe Israel should shoot 10 of them so the dead body exchange is even up.
I believe the body count is currently 1000 to 50000 with approximately 10000 bodies believed to be still under the rubble
Where are you getting that? Hamas Ministry of Health?
I agree. Unless there is some aspect we don't know about, this deal is dreadful, though Hamas &c. are not rational actors, and hardly need any "incentive" to continue taking hostages. Again, unless there's some part we don't know about, this will likely mark the final end of the Netanyahu regime. (At least that part will please Somin.)
Nonsense. Terrorists don't care about incentives. Or, if they do, it's when they decide whether to kill someone or take them hostage. So I'm not sure what the alternative proposal is here, other than more people killing more people.
I think the real problem is they're dealing with the religiously motivated and at the risk of giving offense to some faith is the diametric opposite of rationality and reason. It doesn't matter how badly you are being pummeled and destroyed if you believe in the end your particular god will intervene and save you. In fact everything happening in Gaza is viewed as a test of faith. As a result a normal carrot and stick approach will never work.
"Terrorists don't care about incentives."
Then we shouldn't negotiate with them.
What's the downside of negotiating if it gets you something you want? My observation simply means that you have to judge every deal on its own merits: Are you satisfied that what you're getting is worth more to you than what you're giving?
Dude, EVERYBODY follows incentives.
Even you.
The theory that crime deterrence is a matter of calibrating the probability of someone being caught and the punishment if they are caught has long since been debunked. I'm an economist, I like it, but I also like paying attention to empirical evidence. Criminals are not expected punishment minimisers. And terrorists definitely aren't.
You, an economist, who says "Terrorists don't care about incentives"? I don't think so.
If you like, you can define "incentives" so broadly that it becomes tautological. The statement "everyone maximises something that we'll call utility" can be neither proved nor disproved. That's really neat, but it's not really science, so it's an approach that is decidedly disfavoured among serious economists.
"Terrorists don't care about incentives. Or, if they do, it's when they decide whether to kill someone or take them hostage."
This is a bit silly. Ilya is specifically talking about the incentives that terrorists have to take people hostage.
The incentive here is that if terrorists take people hostage, it's so that they can use those hostages to get their comrades released.
So, you get that right?
Take someone hostage, use that as incentive to get 30 of your best-est comrades in arms released. Good deal, no?
You'd rather they kill those victims instead of taking them hostage? Because anyone who is about to be taken hostage can be killed as well. And I don't see this incentives-based framework as being remotely plausible except at the point of "kill or capture".
"You'd rather they kill those victims instead of taking them hostage?" Of course not.
However....I'd rather Hamas didn't try to take them hostage or kill them AT ALL. These deals can incentivize the hostage taking.
Let's do some basic hypothetical math for you....
Hamas can kill or take hostage 1 Israeli civilian (on average). However, it will cost 10 Hamas fighters their lives (or lifetime in prison) to do this (on average) . Even for Hamas, this doesn't really make sense
But...But...if Hamas can get 30 fighters released from a lifetime in prison...the math makes sense. They "lose" 10 fighters, but they gain another 30 fighters, for a net of plus 20.
See how that works?
re: "Terrorists don't care about incentives."
I don't know if this is the winner of today's Stupidest Thing Said on the Internet contest but it's certainly a strong contender.
Of course, they care about incentives. Caring about consequences is why they take them hostage (or kill them) in the first place. Good lord, my cat has a better understanding of human nature than you apparently do.
Agreed. Let's just charge right in (and the hostages will be killed). Carter opted against that in 1980 and see where it got him.
You assume that most of the remaining hostages are still alive.
Sometimes there are no good options and this "deal" was a bad option.
Look what any answer got the world in the long run.
Charging right in is what Israel shjould have done.
I don't really have an opinion on the deal yet, but if Ilya doesn't like it I feel comfortable supporting it until I have time to do my own research.
Agreed. All deals are bad deals in that part of the world. Somin lives in an imaginary world where he never has to face the consequences of his bad policies. He does not tell us what would be better. Maybe Is Israel should just exterminate everyone in Gaza and make the area uninhabitable? Just guessing.
One of the rare posts I agree with Ilya on, at least partially.
However, on a larger note, the "deal" need to be part of the larger discussion. It is not in isolation. It is in the context of the larger conflict in Gaza. The deal is not "just" large number of prisoners for hostages, which might encourage the same behavior again.
The deal can be thought to be more in the context of an exchange of prisoners of war at the end of a conflict. That "peace dividend" needs to be considered.
In addition the cost of the conflict must play a role in any "incentive" Hamas may have in the future. It is not just that "Hamas can take 30 hostages and get 1000 people released". It is "Hamas can take 30 hostages, then get the shit bombed out of it, most of its upper management killed, its lower ranks decimated...then it might get a few people back. That...is less of an incentive.
Yes ... it's a bad deal.
Liberal values are always at a disadvantage dealing with fanatics, until the fanatics cannibalize themselves.
Liberal values?
I'm not going to praise the deal, but that's 1900 more terrorists available to kill when Hamas decides to break the ceasefire.
One of the few times I agree with prof Somin.
However, I don't see him suggesting an alternative. The only alternative I can see is continuing the war, and clearing every single house and tunnel in Gaza until they find all the hostages, alive or dead. That is my preference, but the world would be screaming in condemnation.
The obvious alternative (which I'll concede is implied rather than explicitly stated in the article above) is to negotiate from an assumption of parity. That is, one Israeli gets you one Palestinian. It's not necessarily the prisoner exchange that's the bad idea - it's the many-to-one payout ratio that makes taking hostages a cost-effective tactic.
The problem is Hamas doesn't even value their own people enough to agree to 1:1 parity.
Doesn't it seem likely that the plan is to get the hostages out by making whatever bad deal is necessary. Once the field is cleared, the US will either help or give Israel whatever it needs to take out Iran. Then when Hamas is isolated and inevitably pursues their mandate, Israel will have a free hand in Gaza.
Sitting from a comfortable home in a well-to-do community, it is easy to criticize the ceasefire agreement. Are you Israeli? Was your country attacked, you people burned to death, your women savagely raped, your children shot, your countrymen's bodies deliberately mutilated?
Newsflash: Israeli culture =/= American culture. They live in a different neighborhood.
What better deal does Ilya the Lesser think hamas would agree to?
For my part, I want the Americans out, dead or alive. That's it. What happens afterward, that is Israel's affair, but I would note that hamas has broken every agreement they ever made, and their goals of killing all Jews has not changed one iota. The palestinians broadly support hamas' agenda - just ask them.
This ceasefire will not hold. When it fails, my hope is Israel will operate with far less restraint, hunt down and kill every hamas member in gaza (and worldwide) they can lay their hands upon. And if gaza is utterly destroyed as a result, so be it. There is no compromise with hamas.
You've basically condensed Revelations in one tidy comment
You lost me, hobie.
"it is easy to criticize the ceasefire agreement."
Sometimes your only option is bad. You might still have to take it.
"my hope is Israel will operate with far less restraint"
From your lips to HaShem's ear.
History shows that lopsided prisoner exchanges can embarrass and hamper the side which receives more prisoners back. The recipient party has to worry which among its returnees has been turned into an agent of the power that held him. The more returnees there are, the harder that problem is to manage. Immediately after WW II, the Soviets became infamous for simplifying that dilemma by simply killing large numbers of returnees, or exiling and imprisoning them.
Even without the spy vs. spy angle, the problem what to do with folks previously held hostage by an enemy has practical downsides. Many of them will arrive unsuitable for work. The enemy gets the benefit of no longer having the burden to hold, feed, and care for them. The recipient gets that burden instead.
During the Civil War, Grant was sometimes eager to impose released prisoners on the hard-pressed economies of his adversaries. He was forthrightly strategic in discussing it.
You believe that Hamas will reason that counting the hostage exchange, the aftermath of the October 7th attacks was a great deal for them? One they'd like to have happen again? Really?
Regardless of who gets credit for what, it won't last long.
Because of internal and external public pressure, Netanyahu came to the negotiating table willing to do ANYTHING to get the hostages back. Hamas said, "This hostage thing works really well for us, your terms are acceptable. We want all of our freedom fighters (that is, criminals) released from jail and returned to us and we want someone else to rebuild out country (that is, Gaza). Our women will have babies. Other Muslim countries will send their youth to fight for us, it's all good." The Israelis said, "okay". This pattern may stop if the Israelis abandon their hostages or Hamas abandons their criminals but - probably not. Other countries will prop up the corpses and keep the fight going. My opinion - worth nothing - is that the Israelis should stop providing power and water to Gaza for free - just turn it off. Break the cycle.
Yes, Israel in numbers get loses the deal, but the Israelis put a high value on their country's citizens and will go to great lengths to get them back. Does that encourage more hostage taking, very likely. But it also builds a strong country and that is also important. Israeli hostages go back to a strong country that values them. The Palestinians go back to a day of praise and little else. They will be forgotten in a few days and then back to the misery of their lives. Most will have had a better deal in an Israeli prison.
Now this is a reasonable counter-argument. I'm not yet sure I agree with you but it's an interesting perspective and I will spend some time thinking about it more deeply. Thank you.
Hey Ilya, about this...
> "The Israelis will release some 1900 terrorists and captured Hamas members in exchange for 33 mostly civilian Israeli hostages"
Are they all terrorists though? The article you link for that number says of 1,167 of them:
> "Israel will also be releasing 1,167 Palestinians detained in the Gaza Strip during the IDF’s ground offensive, who did not participate in the Hamas-led October 7, 2023, invasion and massacre in southern Israel."
That doesn't seem to indicate they're terrorists, especially considering they're only referenced as detainees it seems... it's likely they're people that didn't evacuate the warzone before the IDF invaded the Gaza Strip, no? The article by the Times of Israel seems to take pains to seperate them from the 737 Jailed Prisoners (of which Israel published the names of 735 of them for people to file protests).
At least that's how I'm reading it.
The Pali behavior post -cease fire is going to mean a forceful response in 43 days. Much anger in Israel over the exchange where a baying mob surrounded the women.
If those two Bibas toddlers come out in coffins [as seems likely] the last 430 days will seem like quaint 18th century warfare.
I rarely agree with the professor, but he nailed this one.
This example is the counterpoint to the argument that we need to abolish the death penalty because an innocent person might be mistakenly executed.
Innocent people were taken hostage to secure the release of murderers like Ahlam Tamimi. And innocent people do get killed in attempts to take them or other innocent people hostage!
We need the death penalty.
So does Israel.
If the Knesset needs to establish the death penalty and eliminate judicial review of a death sentence to ensure that it is carried out, so be it.