Conflict as a Part of the Bargaining Process
AbstractThis article investigates the use of conflict as a bargaining instrument. First, it illustrates the role of confrontation as a source of information by analysing a sample of colonial and imperial wars. Then, it explores a bargaining model with incomplete information where parties can choose the scope of the confrontation they may want to engage in. This model shows that conflict can have a double-edged effect: it may open the door to agreement when no agreement is feasible. But it can also create inefficiency when agreement is possible but the agents fight in order to improve their bargaining position. Copyright � The Author(s). Journal compilation � Royal Economic Society 2009.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 119 (2009)
Issue (Month): 539 (07)
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- Clara Ponsati & Santiago Sanchez-Pages, 2012.
"Optimism and commitment: an elementary theory of bargaining and war,"
Spanish Economic Association, vol. 3(1), pages 157-179, March.
- Ponsati, Clara & Sanchez-Pages, Santiago, 2010. "Optimism and commitment: An elementary theory of bargaining and war," SIRE Discussion Papers 2010-101, Scottish Institute for Research in Economics (SIRE).
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- Sanchez-Pages, Santiago, 2009. "Bargaining and Conflict with Incomplete Information," SIRE Discussion Papers 2009-55, Scottish Institute for Research in Economics (SIRE).
- Siwan Anderson & Garance Genicot, 2014. "Suicide and Property Rights in India," NBER Working Papers 19978, National Bureau of Economic Research, Inc.
- Siwan Anderson & Garance Genicot, 2012. "Suicide and Property Rights in India," Working Papers id:5080, eSocialSciences.
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