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Peace agreements without commitment

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  • Beviá, Carmen
  • Corchón, Luis C.

Abstract

In this paper we present a model of war between two rational and completely informed players. We show that in the absence of binding agreements war can be avoided in many cases by one player transferring money to the other player. In most cases, the "rich" country transfers part of its money to the "poor" country. But when the military proficiency of the "rich" country is sufficiently high the "poor" country stops the war by transferring part of its resources to the "rich" country. War cannot be avoided by transfers when inequality of resources is very large or the cost of war is sufficiently low.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 68 (2010)
Issue (Month): 2 (March)
Pages: 469-487

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Handle: RePEc:eee:gamebe:v:68:y:2010:i:2:p:469-487

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Web page: http://www.elsevier.com/locate/inca/622836

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Citations

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Cited by:
  1. Grégoire Rota-Graziosi & Magnus Hoffmann, 2011. "Endogenous Timing in General Rent‐Seeking and Conflict Models," Working Papers halshs-00553119, HAL.
  2. Pelosse, Yohan, 2011. "Inter and intra-group conflicts as a foundation for contest success functions," MPRA Paper 31468, University Library of Munich, Germany.
  3. Clara Ponsati & Santiago Sanchez-Pages, 2012. "Optimism and commitment: an elementary theory of bargaining and war," SERIEs, Spanish Economic Association, vol. 3(1), pages 157-179, March.
  4. Antonis Adam & Petros G. Sekeris, 2010. "Self-Containment: Achieving Peace in Anarchic Settings," Working Papers 1014, University of Namur, Department of Economics.
  5. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.

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