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Information, Reputation and Ethnic Conflict

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  • Rohner, D.

Abstract

Empirical 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 Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0658.

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Length: 29
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:cam:camdae:0658

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Keywords: Conflict; Ethnicity; Reputation; Information; Trade;

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  2. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
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  13. Tirole, Jean, 1994. ""A Theory of Collective Reputations" with Applications to the Persistence of Corruption and to Firm Quality," IDEI Working Papers 38, Institut d'Économie Industrielle (IDEI), Toulouse.
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  18. Francesco Caselli & Wilbur John Coleman II, 2006. "On the theory of ethnic conflict," LSE Research Online Documents on Economics 3561, London School of Economics and Political Science, LSE Library.
  19. Avinash Dixit, 2003. "Trade Expansion and Contract Enforcement," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1293-1317, December.
  20. Rohner, Dominic, 2006. "Beach holiday in Bali or East Timor? Why conflict can lead to under- and overexploitation of natural resources," Economics Letters, Elsevier, vol. 92(1), pages 113-117, July.
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