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Conflict in the Shadow of Conflict

Author

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  • Bang, Se Hoon
  • Kim, Jae Soo

Abstract

We study how an advantage given to an interim winner in sequential conflicts characterizes dynamic competition between players and influences their payoffs. As the intensity of competition during each period is negatively correlated, perfect security is not necessarily desirable for contending parties. We present results which are widely applicable to various types of dynamic competition, where competition in each period is linked to the interim winner's relative advantage. Policy implications are also discussed in a variety of areas, and several extensions are explored.

Suggested Citation

  • Bang, Se Hoon & Kim, Jae Soo, 2016. "Conflict in the Shadow of Conflict," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 38(4), pages 95-114.
    • Handle: RePEc:zbw:kdijep:200800
    DOI: 10.23895/kdijep.2016.38.4.95
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Sequential Conflicts; AllPay Auctions; Sequential Innovations; Arms Race;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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