From the Ku Klux Klan’s lynchings to al Qaeda’s World Trade Center attacks, terrorist organizations have historically exploited fear and destruction to achieve their end goals. Attacking both a nation’s government and population, terrorist organizations inflict damage on their intended audiences, or targets. This paper explores how terrorist organizations interact with their targets. In my analysis, I assume complete rationality and build an infinite bargaining model of political concession between both actors. I claim that terrorist organizations bargain with targets in the long run by increasing the payoffs for cooperation and decreasing the payoffs for noncooperation.