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Continuing Conflict

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Author Info
John W. Maxwell (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)
Rafael Reuveny (School of Public and Environmental Affairs, Indiana University)

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Abstract

A relatively small but growing literature in economics examines conflictive activities where agents allocate their resource endowments between wealth production and appropriation. To date, their studies have employed a one period, static game theoretic framework. We propose a methodology to extend this literature to a dynamic setting, modeling continuous conflict over renewable natural resources between two rival groups. Investigating the system’s steady states and dynamics, we find two results of general interest. First, Hirshleifer’s “paradox of power” is self-correcting. Second, if productive activities cause damage to disputed resources, the introduction of a small amount of conflictive activity enhances social welfare.

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File URL: http://www.bus.indiana.edu/riharbau/RePEc/iuk/wpaper/bepp2004-27-maxwell-reuveny.pdf
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Publisher Info
Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2004-27.

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Date of creation: 2004
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Publication status: Published in Journal of Economic Behavior and Organization, 2005
Handle: RePEc:iuk:wpaper:2004-27

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Related research
Keywords: Conflict; Dynamics; Paradox of Power; Renewable Resources;

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Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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.:

  1. Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-38, March. [Downloadable!] (restricted)
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  2. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December. [Downloadable!] (restricted)
  3. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February. [Downloadable!] (restricted)
  4. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
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  5. Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Oxford University Press, vol. 37(1), pages 166-79, January.
  6. Rafael Reuveny & John W. Maxwell, . "Conflict and Renewable Resources," Working Papers 2004-26, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
  7. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
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  8. Usher, Dan, 1989. "The Dynastic Cycle and the Stationary State," American Economic Review, American Economic Association, vol. 79(5), pages 1031-44, December. [Downloadable!] (restricted)
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  9. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Oxford University Press, vol. 35(3), pages 480-94, July.
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Cited by:
(explanations, 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.)

  1. John W. Maxwell & Rafael Reuveny & Jefferson Davis, 2007. "Dynamic Winner-take-all Conflict," Working Papers 2007-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
  2. DE LA CROIX, David & DOTTORI, Davide, 2007. "Easter IslandÕs collapse: A tale of a population race," CORE Discussion Papers 2007001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
    Other versions:
  3. Alex Coram, 2006. "An asymmetric dynamic struggle between pirates and producers," Working Papers 2006-07, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  4. Wick, Katharina, 2007. "Conflict and Production: An Application to Natural Resources," Proceedings of the German Development Economics Conference, Göttingen 2007 34, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
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This page was last updated on 2009-11-16.

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