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Mobility and Conflict

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  • Sourav Bhattacharya
  • Joyee Deb
  • Tapas Kundu

Abstract

We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the right to allocate societyÕs resources, and we allow for costly inter-group mobility. The winning group offers an allocation, that the opposition can either accept, or reject and wage conflict. Expropriating a large share of resources increases political strength by attracting opposition members, but such economic exclusion implies lower per capita shares and higher risk of conflict. In equilibrium, allocations are non-monotonic in the cost of mobility. Moreover, limited commitment with respect to mobility gives rise to inefficient conflict in equilibrium.

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Bibliographic Info

Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 11-20.

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Date of creation: 2011
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Handle: RePEc:ste:nystbu:11-20

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Postal: New York University, Leonard N. Stern School of Business, Department of Economics, 44 West 4th Street, New York, NY 10012-1126
Phone: (212) 998-0860
Fax: (212) 995-4218
Web page: http://w4.stern.nyu.edu/economics/
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