On the social efficiency of conflict
AbstractIn sharp contrast with the economic literature on conflict, this paper shows that confrontation may be efficiency enhancing. Conditions are derived under which a contest over the exclusive control of a resource Pareto dominates open access. When the population size is big enough or production exhibits strong decreasing returns to scale, agents unanimously prefer to engage in conflict.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 90 (2006)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
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