The dislocations of terror: Assessments of risk during the Second Intifada

► We explore the Israeli experience of living with chronic terror, especially how individuals assess their vulnerability. ► We examine whether distance from an attack site, or similarity to a contemplated undertaking, influence decision making. ► Two data sets are used: sales data from Jerusalem coffee shops and the household panel of the Israel Expenditure Survey. ► We find strong support for a situational similarity effect but only weak evidence for a proximity effect.