Information, Reputation and Ethnic Conflict
AbstractEmpirical studies have found ethnic cleavages to play an important role in the occurrence of civil conflict. Surprisingly, theoretical research on ethnic con.ict has been very scarce. In the present contribution a theoretical model of reputation and ethnic conflict is built. Depending on the information structure and the reputation cost of defecting, economic interaction can either result in (peaceful) trade or in appropriative conflict. Ethnic divisions affect the reputation cost of defection and therefore influence the conflict risk. It is shown what respective effects ethnic fractionalisation, polarisation and segregation have on the risk of conflict.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0658.
Date of creation: Nov 2006
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Conflict; Ethnicity; Reputation; Information; Trade;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- F10 - International Economics - - Trade - - - General
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-10 (All new papers)
- NEP-INT-2007-03-10 (International Trade)
- NEP-SOC-2007-03-10 (Social Norms & Social Capital)
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