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 California Irvine - School of Social Sciences in its series Papers with number
99-00-11.
Find related papers by JEL classification: D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
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