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War with Outsiders Makes Peace Inside

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Author Info
Johannes Münster (Free University of Berlin andWZB. WZB, Reichpietschufer 50, 10785 Berlin, Germany. muenster@wz-berlin.de)
Klaas Staal (University of Bonn and ZEI. ZEI(b), Walter-Flex-Straße 3, 53113 Bonn, Germany. kstaal@uni-bonn.de)
Abstract

In many situations there is a potential for conflict both within and between groups. Examples include wars and civil wars and distributional conflict in multitiered organizations like federal states or big companies. This paper models such situations with a logistic technology of conflict. If individuals decide simultaneously and independently about the amount of internal conflict, external conflict and production, there is typically either only internal conflict, or only external conflict - but not both. If each group decides collectively how much each member has to put into the external conflict before the members individually decide on the amounts put into the internal conflict and production, groups choose sufficiently high external conflict in order to avoid internal conflict. This is a model of the "diversionary use of force". We also study the optimal number of groups.

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Publisher Info
Paper provided by SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Papers with number 75.

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Date of creation: Dec 2005
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Handle: RePEc:trf:wpaper:75

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Related research
Keywords: conflict; war; rent-seeking; hierarchy; federalism; diversion;

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing

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References listed on IDEAS
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  4. Rajan, Raghuram G. & Zingales, Luigi, 2000. "The tyranny of inequality," Journal of Public Economics, Elsevier, vol. 76(3), pages 521-558, June. [Downloadable!] (restricted)
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  16. Milgrom, Paul R, 1988. "Employment Contracts, Influence Activities, and Efficient Organization Design," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 42-60, February. [Downloadable!] (restricted)
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  17. Matthew J. Baker, 2003. "An Equilibrium Conflict Model of Land Tenure in Hunter-Gatherer Societies," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 124-173, February. [Downloadable!] (restricted)
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Cited by:
(explanations, 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. DE LA CROIX, David & DOTTORI, Davide, 2007. "Easter IslandÕs collapse: A tale of a population race," CORE Discussion Papers 2007001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
    Other versions:
  2. Enrico Spolaore, 2007. "Civil Conflict and Secessions," Discussion Papers Series, Department of Economics, Tufts University 0705, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
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