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Bargaining Versus Fighting

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Author Info
Stergios Skaperdas

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Abstract

I examine the determinants of conflict and settlement by embedding probabilistic contests in a bargaining framework. Different costly enforcement efforts (e.g. arming, litigation expenditures) induce different disagreement points and Pareto frontiers. After examining the incentives for settlement, I demonstrate how different division rules and bargaining norms have real, economic effects. I then analyze some sources of conflict. I emphasize long-term, strategic considerations by examining an illustrative model and discussing particular historical examples.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Defence and Peace Economics.

Volume (Year): 17 (2006)
Issue (Month): 6 (December)
Pages: 657-676
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Handle: RePEc:taf:defpea:v:17:y:2006:i:6:p:657-676

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Related research
Keywords: Conflict Negotiation War Settlement Litigation K4

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References listed on IDEAS
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  1. Robson, Alexander R. W. & Skaperdas, Stergios, 2002. "Costly Enforcement of Property Rights and the Coase Theorem," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  2. Helmut Bester & Kai A. Konrad, 2003. "Easy Targets and the Timing of Conflict," Center for European, Governance and Economic Development Research (cege) Discussion Papers 21, Center for European, Governance and Economic Development Research, University of Goettingen (Germany).. [Downloadable!]
    Other versions:
  3. Skaperdas, Stergios & Syropoulos, Constantinos, 1996. "Can the shadow of the future harm cooperation?," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 355-372, May. [Downloadable!] (restricted)
  4. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
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  5. Garfinkel, M.R., 1992. "Domestic Politics and International Conflict," Papers 90-92-30, California Irvine - School of Social Sciences.
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  6. Jack Hirshleifer, 1995. "Theorizing About Conflict," UCLA Economics Working Papers 727, UCLA Department of Economics. [Downloadable!]
  7. Anbarci, Nejat & Skaperdas, Stergios & Syropoulos, Constantinos, 2002. "Comparing Bargaining Solutions in the Shadow of Conflict: How Norms against Threats Can Have Real Effects," Journal of Economic Theory, Elsevier, vol. 106(1), pages 1-16, September. [Downloadable!] (restricted)
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  8. Bester, Helmut & Konrad, Kai A, 2003. "Delay in Contests," CEPR Discussion Papers 3784, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Avner Greif, 1997. "Self-enforcing Political System and Economic Growth: Late Medieval Genoa," Working Papers 97037, Stanford University, Department of Economics. [Downloadable!]
  10. Hess, Gregory D & Orphanides, Athanasios, 1995. "War Politics: An Economic, Rational-Voter Framework," American Economic Review, American Economic Association, vol. 85(4), pages 828-46, September. [Downloadable!] (restricted)
  11. Jack Hirshleifer & Michele Boldrin & David K Levine, 2007. "The Slippery Slope of Concession," Levine's Working Paper Archive 618897000000001057, UCLA Department of Economics. [Downloadable!]
  12. Michael McBride & Stergios Skaperdas, 2005. "Explaining Conflict in Low-Income Countries: Incomplete Contracting in the Shadow of the Future," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  13. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006. [Downloadable!]
    Other versions:
  14. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May. [Downloadable!] (restricted)
  15. Stergios Skaperdas & Constantinos Syropoulos, 2002. "Insecure Property and the Efficiency of Exchange," Economic Journal, Royal Economic Society, vol. 112(476), pages 133-146, January. [Downloadable!] (restricted)
  16. Santiago Sanchez-Pages, 2004. "The use of conflict as a bargaining tool against unsophisticated opponents," ESE Discussion Papers 99, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
  17. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics. [Downloadable!]
  18. Fearon, James D, 1995. "Rationalist Explanations for War," International Organization, MIT Press, vol. 49(3), pages 379-414, Summer.
  19. Helmut Bester & Karl Wärneryd, 2006. "Conflict and the Social Contract," Scandinavian Journal of Economics, Blackwell Publishing, vol. 108(2), pages 231-249, 07. [Downloadable!] (restricted)
    Other versions:
    • Helmut Bester & Karl Wärneryd, 2006. "Conflict and the Social Contract," Discussion Papers 94, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
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