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Conflict as a Part of the Bargaining Process

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  • Santiago Sánchez‐Pagés

Abstract

This article investigates the use of conflict as a bargaining instrument. First, it illustrates the role of confrontation as a source of information by analysing a sample of colonial and imperial wars. Then, it explores a bargaining model with incomplete information where parties can choose the scope of the confrontation they may want to engage in. This model shows that conflict can have a double‐edged effect: it may open the door to agreement when no agreement is feasible. But it can also create inefficiency when agreement is possible but the agents fight in order to improve their bargaining position.

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  • Santiago Sánchez‐Pagés, 2009. "Conflict as a Part of the Bargaining Process," Economic Journal, Royal Economic Society, vol. 119(539), pages 1189-1207, July.
    • Handle: RePEc:wly:econjl:v:119:y:2009:i:539:p:1189-1207
    DOI: 10.1111/j.1468-0297.2009.02259.x
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    Cited by:

    1. Sambuddha Ghosh & Gabriele Gratton & Caixia Shen, 2019. "Intimidation: Linking Negotiation And Conflict," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 60(4), pages 1589-1618, November.
    2. Schaller, Zachary & Skaperdas, Stergios, 2020. "Bargaining and conflict with up-front investments: How power asymmetries matter," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 212-225.
    3. Kyung nok Chun & Zachary Schaller & Stergios Skaperdas, 2020. "Why Are There Strikes?," Revue d'économie politique, Dalloz, vol. 130(6), pages 929-956.
    4. Clara Ponsati & Santiago Sanchez-Pages, 2012. "Optimism and commitment: an elementary theory of bargaining and war," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 3(1), pages 157-179, March.
    5. Anderson, Siwan & Genicot, Garance, 2015. "Suicide and property rights in India," Journal of Development Economics, Elsevier, vol. 114(C), pages 64-78.
    6. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Silva, 2020. "A theory of predatory welfare state and citizen welfare: the French case," Public Choice, Springer, vol. 182(3), pages 243-271, March.
    7. Santiago Sanchez-Pages, 2009. "Bargaining and Conflict with Incomplete Information," Edinburgh School of Economics Discussion Paper Series 191, Edinburgh School of Economics, University of Edinburgh.
    8. Trinidad Beleche, 2019. "Domestic violence laws and suicide in Mexico," Review of Economics of the Household, Springer, vol. 17(1), pages 229-248, March.
    9. Siddhartha Bandyopadhyay & Amit K Chattopadhyay & Mandar Oak, 2022. "A model of conflict and leadership: Is there a hawkish drift in politics?," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-21, January.
    10. Parashari, Gopal Sharan & Kumar, Vimal, 2020. "Destruction and settlement norms as determinants of conflict: An evolutionary perspective," European Journal of Political Economy, Elsevier, vol. 63(C).

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