Peace agreements without commitment
AbstractIn this paper we present a model of war between two rational and completely informed players. We show that in the absence of binding agreements war can be avoided in many cases by one player transferring money to the other player. In most cases, the "rich" country transfers part of her money to the "poor" country. Only when the military proficiency of the "rich" country is sufficiently great, it could be that the "poor" country can stop the war by transfering part of its resources to the "rich" country.
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Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we081508.
Date of creation: Mar 2008
Date of revision:
Other versions of this item:
- Carmen Beviá & Luis C. Corchón, 2008. "Peace Agreements Without Commitment," Working Papers 340, Barcelona Graduate School of Economics.
- Beviá, Carmen & Corchón, Luis C., . "Peace agreements without commitment," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/2354, Universidad Carlos III de Madrid.
- NEP-ALL-2008-04-12 (All new papers)
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