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Conflict Without Misperceptions or Incomplete Information: How the Future Matters

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  • Michelle R Garfinkel
  • Stergios Skaperdas

Abstract

Conflict and war are typically viewed as the outcome of misperceptions, incomplete information, or even irrationality. We show that it can otherwise. Despite the short-run incentives to settle disputes peacefully , there can be long-term, compounding rewards to going to war when doing better relative to one's opponent today implies doing better tomorrow.

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Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 563824000000000011.

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Date of creation: 27 Oct 2001
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Handle: RePEc:cla:levarc:563824000000000011

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Web page: http://www.dklevine.com/

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  1. Skaperdas, Stergios & Syropoulos, Constantinos, 1996. "Can the shadow of the future harm cooperation?," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 29(3), pages 355-372, May.
  2. Alvin E Roth, 2008. "Axiomatic Models of Bargaining," Levine's Working Paper Archive 122247000000002376, David K. Levine.
  3. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 35(3), pages 480-94, July.
  4. Skaperdas, Stergios, 1991. "Conflict and Attitudes toward Risk," American Economic Review, American Economic Association, American Economic Association, vol. 81(2), pages 116-20, May.
  5. Skaperdas, Stergios & Syropoulos, Constantinos, 1997. "The Distribution of Income in the Presence of Appropriative Activities," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 64(253), pages 101-17, February.
  6. Garfinkel, Michelle R, 1990. "Arming as a Strategic Investment in a Cooperative Equilibrium," American Economic Review, American Economic Association, American Economic Association, vol. 80(1), pages 50-68, March.
  7. Helmut Bester & Karl Warneryd, . "Conflict Resolution under Asymmetric Information," Papers, Departmental Working Papers 006, Departmental Working Papers.
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