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War with Outsiders Makes Peace Inside

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  • Münster, Johannes
  • Staal, Klaas
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    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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    File URL: http://epub.ub.uni-muenchen.de/13476/1/75.pdf
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    Bibliographic Info

    Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 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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    12. Nitzan, Shmuel, 1991. "Collective Rent Dissipation," Economic Journal, Royal Economic Society, vol. 101(409), pages 1522-34, November.
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    Cited by:
    1. Enrico Spolaore, 2008. "Civil conflict and secessions," Economics of Governance, Springer, vol. 9(1), pages 45-63, January.
    2. David, DE LA CROIX & Davide, DOTTORI, 2007. "Easter Island’s Collapse : A Tale of a Population Race," Discussion Papers (ECON - Département des Sciences Economiques) 2007005, Université catholique de Louvain, Département des Sciences Economiques.

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