Advanced Search
MyIDEAS: Login

Conflict and negotiation: a game theoretical approach

Contents:

Author Info

  • Hernando Zuleta

    ()

  • Juanita Villaveces

    ()

Abstract

We study economic conflicts using a game theoretical approach. We model a conflict between two agents where each one has two possible strategies: cease-fire or neglect the truce. Under this setting, we use the concept of pre-donations, namely, a redefinition of the game where agents commit to transfer a share of their output to the other agent (Sertel, 1992), and explain under which conditions a system of pre-donations can facilitate a truce. We find that for conflicts involving high costs there is a distributive mechanism, acceptable for both parties, such that, the best strategy for both parties is Cease-Fire. However, in many cases there are no sufficient conditions for the scheme or pre-donations to be effective. We also analyze some limitations of this framework and extend the model in order to deal with some of these flaws. Finally, in order to illustrate the relevance of the theoretical results we briefly describe some of the circumstances that characterized the negotiation processes between the Colombian government and different illegal groups.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.urosario.edu.co/economia/documentos/pdf/dt54.pdf
Download Restriction: no

Bibliographic Info

Paper provided by UNIVERSIDAD DEL ROSARIO in its series DOCUMENTOS DE TRABAJO with number 005148.

as in new window
Length: 33
Date of creation: 02 Nov 2008
Date of revision:
Handle: RePEc:col:000092:005148

Contact details of provider:

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Oeindrila Dube & Juan F. Vargas, 2006. "Resource Curse in Reverse: The Coffee Crisis and Armed Conflict in Colombia," Royal Holloway, University of London: Discussion Papers in Economics 06/05, Department of Economics, Royal Holloway University of London, revised Dec 2006.
  2. Skaperdas, S., 1991. "Cooperation, Conflict And Power In The Absence Of Property Rights," Papers 90-91-06a, California Irvine - School of Social Sciences.
  3. Hernando Zuleta & Veneta Andonova, 2006. "Conflict, wages, and multiple equilibria, a private path to prosperity," DOCUMENTOS DE TRABAJO 002181, UNIVERSIDAD DEL ROSARIO.
  4. Grossman, Herschel I, 1994. "Production, Appropriation, and Land Reform," American Economic Review, American Economic Association, vol. 84(3), pages 705-12, June.
  5. Roemer, John E., 1998. "Why the poor do not expropriate the rich: an old argument in new garb," Journal of Public Economics, Elsevier, vol. 70(3), pages 399-424, December.
  6. Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
  7. Veneta Andonova & Hernando Zuleta, 2007. "The effect of enforcement on human resources practices: A case study in rural Colombia," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 344 - 353, April.
  8. Sertel, Murat R., 1992. "The Nash bargaining solution manipulated by pre-donations is Talmudic," Economics Letters, Elsevier, vol. 40(1), pages 45-55, September.
  9. Azam, Jean-Paul, 1995. " How to Pay for the Peace? A Theoretical Framework with References to African Countries," Public Choice, Springer, vol. 83(1-2), pages 173-84, April.
  10. Daniel Mejía & Carlos Posada, . "Capital Destruction, Optimal Defense and Economic Growth," Borradores de Economia 257, Banco de la Republica de Colombia.
  11. Barron, Patrick & Kaiser, Kai & Pradhan, Menno, 2004. "Local conflict in Indonesia : Measuring incidence and identifying patterns," Policy Research Working Paper Series 3384, The World Bank.
  12. Armando Montenegro & Carlos Esteban Posada, . "Criminalidad en Colombia," Borradores de Economia 004, Banco de la Republica de Colombia.
  13. Alberto Alesina & Sule Ozler & Nouriel Roubini & Phillip Swagel, 1992. "Political Instability and Economic Growth," NBER Working Papers 4173, National Bureau of Economic Research, Inc.
  14. Hirshleifer, Jack, 1987. "Economic Behaviour in Adversity," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226342825, June.
  15. Skaperdas, Stergios & Syropoulos, Constantinos, 1997. "The Distribution of Income in the Presence of Appropriative Activities," Economica, London School of Economics and Political Science, vol. 64(253), pages 101-17, February.
  16. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-94, July.
  17. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  18. Raul Caruso, 2004. "A Trade Institution as a Peaceful Institution?," Others 0406003, EconWPA, revised 15 Dec 2004.
  19. Michelle R. Garfinkel, 2003. "On the Stability of Group Formation: Managing the Conflict Within," Public Economics 0312005, EconWPA, revised 04 Mar 2004.
  20. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:col:000092:005148. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicaciones Economía).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.