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Stability of alliance networks

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  • Cai, Xinyue
  • Kimya, Mert

Abstract

We investigate whether peace can be achieved through the formation of an alliance network, where an alliance designates the possibility of coordinating joint offensive and defensive military action. If players are myopic then no alliance network is peaceful in the absence of trade (see Jackson and Nei (2015)). In contrast, we show that if players anticipate that an initial act of aggression can result in further conflict then peaceful alliance networks can be constructed by dividing the players into two components in such a way that inter-component conflict is avoided through the fear of ensuing intra-component conflict, and intra-component conflict is avoided through the fear of ensuing inter-component conflict.

Suggested Citation

  • Cai, Xinyue & Kimya, Mert, 2023. "Stability of alliance networks," Games and Economic Behavior, Elsevier, vol. 140(C), pages 401-409.
    • Handle: RePEc:eee:gamebe:v:140:y:2023:i:c:p:401-409
    DOI: 10.1016/j.geb.2023.04.008
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    More about this item

    Keywords

    Farsighted stability; Networks; Coalitional games; Farsighted stable set; Power; Alliances;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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