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Managing Asymmetric Conflict

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  • Paul Dunne
  • Maria del Carmen Garcia-Alonso

    ()

  • Paul Levine Author Name: Ron Smith

Abstract

We consider conflicts between an incumbent, e.g. government or dominant firm, and potential challengers, e.g. guerilla movement or entrants. It is not uncommon for challengers to win such conflicts despite their lack of resources. They can do this by exploiting a second mover advantage: choosing to attack the incumbent in ways that it had not prepared for, because it was locked in by past investments. To model such asymmetric conflict we use a three stage game. In the first stage the incumbent chooses effort; in the second stage the challengers choose the degree of differentiation from the incumbent and in the third stage each decide whether to attack or defend and collect their payoffs. This simple model has a number of interesting predicitions, which may apply in certain types of legal, commercial and military conflicts.

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Bibliographic Info

Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0411.

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Date of creation: Oct 2004
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Handle: RePEc:ukc:ukcedp:0411

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Keywords: Game theory; product differentiation; conflict;

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Cited by:
  1. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.
  2. Bove Vincenzo & Gleditsch Kristian Skrede, 2011. "2010 Lewis Fry Richardson Lifetime Achievement Award: Ron P. Smith and the Economics of War and Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-12, December.
  3. Laurentiu Barcan, 2012. "Organizational Change Management Approach In An International Context," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(18), pages 113-122, April.
  4. Christopher K. Butler & Scott Gates, 2010. "The Technology of Terror: Accounting for the Strategic Use of Terrorism," Economics of Security Working Paper Series 30, DIW Berlin, German Institute for Economic Research.

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