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Boycotts, Power Politics, or Trust Building: How to Prevent Conflict?

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  • Arne Schollaert
  • Dirk Van de gaer

Abstract

In a game of imperfect information, the paper analyses whether different types of intervention by third parties can ensure that political (ethnic, religious, social, etc.) groups within a country will pursue a cooperative strategy and how easy it is to predict their effects. We conclude that a strong boycott is the only instrument that is always effective and that trust building, although currently widely acclaimed by, e.g., the United Nations, is not only less effective but difficult to predict and - like power politics - can favour one group at the expense of the other.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 164 (2008)
Issue (Month): 2 (June)
Pages: 356-379

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200806)164:2_356:bppotb_2.0.tx_2-t

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  1. A. Schollaert & D. Van De Gaer, 2005. "Boycotts, power politics or trust building: how to prevent conflict?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/308, Ghent University, Faculty of Economics and Business Administration.
  2. P. Everaert & G. Sarens, 2005. "Outsourcing bij Vlaamse Ondernemingen: een Exploratief Onderzoek," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/306, Ghent University, Faculty of Economics and Business Administration.
  3. Claeys, Sophie & Lanine, Gleb & Schoors, Koen, 2005. "Bank supervision Russian style: Rules versus enforcement and tacit objectives," BOFIT Discussion Papers 10/2005, Bank of Finland, Institute for Economies in Transition.
  4. S. CLAEYS & G. LANINE & K. SCHOORs, 2005. "Bank Supervision Russian Style: Rules vs Enforcement and Tacit Objectives," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/307, Ghent University, Faculty of Economics and Business Administration.
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