Dynamic Winner-take-all Conflict
AbstractThis paper develops a model of dynamic conflict featuring probabilistic winner- take-all outcomes and compares its behavior to a model in which combatants emerge with a share of the conflict spoils. While these two models generate the same behavior in a one-shot game, we find that in a repeated conflict setting the winner-take-all model generates richer dynamics than the dynamics generated by the share model. Differences include outcomes that illustrate the rise and fall of great powers, the endogenous extinction of combatants, and frequent changes in the relative dominance of combatants. The model's behavior is compared to real world military, business and political conflict outcomes.
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Bibliographic InfoPaper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2007-12.
Date of creation: 2007
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More information through EDIRC
Anarchy; Fog of War; Paradox of Power; Winner-take-all conflict;
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
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