This note is about the possibility of a stalemate in a continuing conflict. Following the prevailing economic literature on the topic, under some assumptions, the outcome of a conflict can be described in two ways: (i) a predetermined split of a contested output; (ii) a winner-take-all contest where the winning agent is capable to grab all the contested stake. By contrast, in reality many disputes do not have a clear or a definite outcome. A stalemate can end the conflict with the result of a draw. To allow for a stalemate, some formal modifications to the classical Hirshleifer’s model of conflict are needed. In particular, the possibility of a stalemate can be captured through a modified form of the Contest Success Function as axiomatized by Blavatskyy (2004). Under the possibility of a stalemate, the scenario exhibits a higher level of ‘guns’ than Hirshleifer’s classical model. At the same time, it also exhibits a lower degree of entropy.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2316.
Find related papers by JEL classification: H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions
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Michelle R. Garfinkel & Stergios Skaperdas, 2006.
"Economics of Conflict: An Overview,"
Working Papers
050623, University of California-Irvine, Department of Economics, revised Sep 2006.
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