Mediation and Peace
AbstractThis paper brings mechanism design to the study of conflict resolution in international relations. We determine when and how unmediated communication and mediation reduce the ex ante probability of conflict, in a simple game where conflict is due to asymmetric information. Unmediated communication helps reducing the chance of conflict as it allows conflicting parties to reveal their types and establish type-dependent transfers to avoid conflict. Mediation improves upon unmediated communication when the intensity of conflict is high, or when asymmetric information is large. The mediator improves upon unmediated communication by not precisely reporting information to conflicting parties, and precisely, by not revealing to a player with probability one that the opponent is weak. Surprisingly, in our set up, arbitrators who can enforce settlements are no more effective in reducing the probability of conflict than mediators who can only make non-binding recommendations.
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Bibliographic InfoPaper provided by European University Institute in its series Economics Working Papers with number ECO2010/32.
Date of creation: 2010
Date of revision:
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More information through EDIRC
Mediation; War and Peace; Imperfect Information; Communication Games; Optimal Mechanism;
Other versions of this item:
- Horner, Johannes & Morelli, Massimo & Squintani, Francesco, 2011. "Mediation and Peace," CAGE Online Working Paper Series 66, Competitive Advantage in the Global Economy (CAGE).
- Johannes Horner & Massimo Morelli & Francesco Squintani, 2010. "Mediation and Peace," Cowles Foundation Discussion Papers 1765, Cowles Foundation for Research in Economics, Yale University.
- Johannes Horner & Massimo Morelli & Francesco Squintani, 2010. "Mediation and Peace," Levine's Working Paper Archive 661465000000000133, David K. Levine.
- Johannes Hoerner & Massimo Morelli & Francesco Squintani, 2011. "Mediation and Peace," Economics Working Papers ECO2011/19, European University Institute.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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