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Alliance Formation, Alliance Expansion, and the Core

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  • Sandler, Todd

Abstract

This article presents a simple cooperative game theory representation of alliance formation and expansion to counter a conventional threat along the allies' borders. Mutual defense gains, derived from allying, arise from interior borders that no longer require protection. Spatial and locational attributes of the allies are crucial when identifying the gains from mutual defense and the distribution of these gains. The same number of allies can have vastly different cores depending on their spatial configurations. Extensions to the baseline case consider transaction costs, natural defenses, guerrilla warfare, and risk concerns. An application to the NATO alliance indicates that the theory has much to say about which additional Partnership for Peace countries are likely to join NATO after the three Visegrad countries.
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Suggested Citation

  • Sandler, Todd, 1999. "Alliance Formation, Alliance Expansion, and the Core," Staff General Research Papers Archive 1669, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:1669
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    References listed on IDEAS

    as
    1. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931.
    2. Sandler, Todd & Hartley, Keith, 1999. "The Political Economy of Nato: Past, Present, and into the 21st Century," Staff General Research Papers Archive 1441, Iowa State University, Department of Economics.
    3. Todd Sandler, 1993. "The Economic Theory of Alliances," Journal of Conflict Resolution, Peace Science Society (International), vol. 37(3), pages 446-483, September.
    4. Keith Hartley & Todd Sandler, 1999. "NATO Burden-Sharing: Past and Future," Journal of Peace Research, Peace Research Institute Oslo, vol. 36(6), pages 665-680, November.
    5. James C. Murdoch & Todd Sandler, 1982. "A Theoretical and Empirical Analysis of NATO," Journal of Conflict Resolution, Peace Science Society (International), vol. 26(2), pages 237-263, June.
    6. Todd Sandler, 1977. "Impurity Of Defense: An Application To The Economics Of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-460, August.
    7. Sandler, Todd & Forbes, John F, 1980. "Burden Sharing, Strategy, and the Design of NATO," Economic Inquiry, Western Economic Association International, vol. 18(3), pages 425-444, July.
    8. Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers Archive 10818, Iowa State University, Department of Economics.
    9. Daniel G. Arce M., 1994. "Stability Criteria for Social Norms with Applications to the Prisoner's Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 38(4), pages 749-765, December.
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    Cited by:

    1. Michael Finus & Raoul Schneider & Pedro Pintassilgo, 2011. "The Incentive Structure of Impure Public Good Provision – The Case of International Fisheries," Discussion Papers 1103, University of Exeter, Department of Economics.
    2. Dan Kovenock & Brian Roberson, 2012. "Coalitional Colonel Blotto Games with Application to the Economics of Alliances," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 653-676, August.
    3. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 22, pages 649-709, Elsevier.
    4. Noh, Suk Jae, 2002. "Resource distribution and stable alliances with endogenous sharing rules," European Journal of Political Economy, Elsevier, vol. 18(1), pages 129-151, March.
    5. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    6. David Rietzke & Brian Roberson, 2013. "The robustness of ‘enemy-of-my-enemy-is-my-friend’ alliances," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 937-956, April.
    7. Michelle R. Garfinkel, 2004. "On the Stability of Group Formation: Managing the Conflict Within," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(1), pages 43-68, February.
    8. Finus, Michael & McGinty, Matthew, 2019. "The anti-paradox of cooperation: Diversity may pay!," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 541-559.
    9. Michael Finus & Matthew McGinty, 2015. "The Anti-Paradox of Cooperation: Diversity Pays!," Department of Economics Working Papers 40/15, University of Bath, Department of Economics.
    10. John Robst & Solomon Polachek & Yuan-Ching Chang, 2007. "Geographic Proximity, Trade, and International Conflict/Cooperation," Conflict Management and Peace Science, Peace Science Society (International), vol. 24(1), pages 1-24, February.
    11. Michael Finus & Bianca Rundshagen, 2009. "Membership rules and stability of coalition structures in positive externality games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(3), pages 389-406, March.
    12. Keith Hartley & Todd Sandler, 2000. "Defence and peace economics: A ten-year retrospective," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(1), pages 1-16.
    13. Sylvain Baumann, 2018. "Protection, Technological Transfer and Alliance against Terrorist Conflict," Post-Print hal-02949083, HAL.
    14. Garfinkel, Michelle R., 2004. "Stable alliance formation in distributional conflict," European Journal of Political Economy, Elsevier, vol. 20(4), pages 829-852, November.

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