The application of game theory to micro-level conflicts, I think, is a open and burgeoning research area. There are, however, some outstanding pieces currently out there:
The Political Economy of Terrorism - Enders and Sandler (http://www.amazon.com/Political-Econ.../dp/0521616506)
The Logic of Political Survival - BDM, et al (http://www.amazon.com/Logic-Politica...7848452&sr=1-3)
David Laitin's [Stamford] work on civil war (http://politicalscience.stanford.edu...ty/laitin.html)
The Propaganda of the Deed: Terrorism, Counterterrorism, and Mobilization - Beuno de Mesquita and Dickson (http://www.nyu.edu/gsas/dept/politic...propaganda.pdf)
If I think of more I will add them, great question!
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