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The Slippery Slope of Concession

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  • Jack Hirshleifer
  • Michele Boldrin
  • David K Levine

Abstract

"We show that with common knowledge and a common rate of time preference, the potential loser can always avoid wasteful conflict through a time-consistent series of small concessions. We examine how the failure of each of these assumptions may explain why conflicts arise. We also debate which actions may be helpful in such unfortunate circumstances." Copyright (c) 2008 Western Economic Association International.

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Bibliographic Info

Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 618897000000001057.

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Date of creation: 05 Dec 2007
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Handle: RePEc:cla:levarc:618897000000001057

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References

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  1. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  2. Jack Hirshleifer, 2001. "Appeasement: Can It Work?," American Economic Review, American Economic Association, vol. 91(2), pages 342-346, May.
  3. Jack Hirshleifer, 1991. "The Paradox Of Power," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 177-200, November.
  4. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
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Cited by:
  1. Konstantin Sonin & Georgy Egorov & Daron Acemoglu, 2013. "Political Economy in a Changing World," 2013 Meeting Papers 386, Society for Economic Dynamics.
  2. Stergios Skaperdas, 2006. "Bargaining Versus Fighting," Working Papers 060705, University of California-Irvine, Department of Economics.
  3. Yared, Pierre, 2010. "A dynamic theory of war and peace," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1921-1950, September.

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