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A Tentative Model of Conflict, Appropriation and Production in a two-sector Economy

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Author Info
Caruso, Raul

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Abstract

This paper presents a model of conflict in an economy characterized by two sectors. In a first sector labelled as contested sector two agents struggle in order to appropriate the maximum possible fraction of a contestable output. In a second sector, the uncontested sector, each agent holds secure property rights over the production of some goods. Both agents maximize an income function which can be described as a function of contributions of both sectors. Results show that the degree of returns in the uncontested sector is a powerful force which countervails the impact of destructive and unproductive interaction in the contested sector.

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File URL: http://mpra.ub.uni-muenchen.de/4053/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4053.

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Date of creation: Jul 2007
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Handle: RePEc:pra:mprapa:4053

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Related research
Keywords: Conflict; Productive and Unproductive Activities; Butter and Guns; Crime; Warlords; Civil War.;

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Find related papers by JEL classification:
D20 - Microeconomics - - Production and Organizations - - - General
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
F51 - International Economics - - International Relations and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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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. Raul Caruso, 2004. "A Trade Institution as a Peaceful Institution?," Others 0406003, EconWPA, revised 15 Dec 2004. [Downloadable!]
  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. Caruso, Raul, 2007. "Continuing Conflict and Stalemate: A Note," MPRA Paper 2316, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006. [Downloadable!]
    Other versions:
  5. Caruso, Raul, 2007. "Reciprocity in the shadow of Threat," MPRA Paper 1788, University Library of Munich, Germany. [Downloadable!]
  6. Kjell Hausken, 2004. "Mutual Raiding of Production and the Emergence of Exchange," Economic Inquiry, Oxford University Press, vol. 42(4), pages 572-586, October. [Downloadable!] (restricted)
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This page was last updated on 2009-12-1.

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