The Strategy of Manipulating Conflict
Abstract
Two decision-makers choose hawkish or dovish actions in a conflict game with incomplete information. The decision-making can be manipulated by "extremists" who send publicly observed cheap-talk messages. The power of extremists depends on the nature of the underlying conflict game. If actions are strategic complements, a "hawkish extremist" can increase the likelihood of conflict by sending messages which trigger a "fear-spiral" of hawkish actions. This reduces the welfare of both decision-makers. If actions are strategic substitutes, a "dovish extremist" (pacifist) can send messages which cause one decision-maker to back down and become more dovish. This reduces his welfare but benefits the other decision-maker. The hawkish extremist is unable to manipulate the decision-makers if actions are strategic substitutes, and the pacifist is equally powerless if actions are strategic complements.Download Info
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Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200906.Length: 20 pages
Date of creation: 28 Aug 2009
Date of revision:
Handle: RePEc:rut:rutres:200906
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Keywords: global strategy;Other versions of this item:
- Sandeep Baliga & Tomas Sjostrom, 2012. "The Strategy of Manipulating Conflict," American Economic Review, American Economic Association, vol. 102(6), pages 2897-2922, October.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-27 (All new papers)
- NEP-CSE-2009-11-27 (Economics of Strategic Management)
- NEP-GTH-2009-11-27 (Game Theory)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Mikhail Golosov & Vasiliki Skreta & Aleh Tsyvinski & Andrea Wilson, 2011. "Dynamic Strategic Information Transmission," EIEF Working Papers Series 1110, Einaudi Institute for Economic and Finance (EIEF), revised May 2011.
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