A Dynamic Model of Conflict and Cooperation
Abstract
We introduce a common-pool contest into a continuous-time, differential game setting to model the dynamic behavior of agents facing a trade-off between socially productive activities and appropriation. We are able to identify multiple Markov perfect equilibrium strategies that are nonlinear in a state space, thus leading the economy to a state where epartial cooperationf occurs. We show that such cooperation can be seen as a response to conflict. We also discuss the consequences of changes in the effectiveness of appropriation, the number of contenders, and the rate of time preferences on contest equilibria.Download Info
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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 08-27.Length: 31 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:osk:wpaper:0827
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Web page: http://www.econ.osaka-u.ac.jp/
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Related research
Keywords: Conflict; Cooperation; Differential Game; Markov Perfect Equilibrium; Nonlinear Markov strategy;Find related papers by JEL classification:
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-14 (All new papers)
- NEP-GTH-2008-07-14 (Game Theory)
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Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Konrad, Kai A., 2007. "Strategy in contests: an introduction," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, Social Science Research Center Berlin (WZB).
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