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Endogenous Destruction in a Model of Armed Conflict: Implications for Conflict Intensity, Welfare, and Third-Party Intervention

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  • SHANE SANDERS
  • BHAVNEET WALIA

Abstract

This paper employs a contest approach to study a class of territorial conflicts in which conflict-related arming is (endogenously) destructive of the contest prize. Of particular focus is the effect of endogenously destructive conflict arming upon conflict intensity and utility levels among primary parties to conflict. Also of interest are implications of endogenous destruction upon third-party welfare effect in conflict. As compared to the case of a fixed-prize conflict, we find starkly different arming and welfare outcomes in the case of an endogenously destructive conflict. We also find stark differences in third-party effect under this distinct setting.

Suggested Citation

  • Shane Sanders & Bhavneet Walia, 2014. "Endogenous Destruction in a Model of Armed Conflict: Implications for Conflict Intensity, Welfare, and Third-Party Intervention," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(4), pages 606-619, August.
  • Handle: RePEc:bla:jpbect:v:16:y:2014:i:4:p:606-619
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    File URL: http://hdl.handle.net/10.1111/jpet.12076
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    References listed on IDEAS

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    1. Chung, Tai-Yeong, 1996. "Rent-Seeking Contest When the Prize Increases with Aggregate Efforts," Public Choice, Springer, vol. 87(1-2), pages 55-66, April.
    2. Gershenson, Dmitriy, 2002. "Sanctions and Civil Conflict," Economica, London School of Economics and Political Science, vol. 69(274), pages 185-206, May.
    3. Patrick M. Regan, 2002. "Third-party Interventions and the Duration of Intrastate Conflicts," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 55-73, February.
    4. James C. Murdoch & Todd Sandler, 2002. "Economic Growth, Civil Wars, and Spatial Spillovers," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 91-110, February.
    5. Yang-Ming Chang & Zijun Luo, 2013. "War Or Settlement: An Economic Analysis Of Conflcit With Endogenous And Increasing Destruction," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(1), pages 23-46, February.
    6. Kevin Siqueira, 2003. "Conflict and third-party intervention," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 389-400.
    7. Yang-Ming Chang & Shane Sanders, 2009. "Raising The Cost Of Rebellion: The Role Of Third-Party Intervention In Intrastate Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(3), pages 149-169.
    8. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
    9. Chang, Yang-Ming & Potter, Joel & Sanders, Shane, 2007. "War and peace: Third-party intervention in conflict," European Journal of Political Economy, Elsevier, vol. 23(4), pages 954-974, December.
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    Cited by:

    1. repec:bla:ecinqu:v:55:y:2017:i:1:p:479-500 is not listed on IDEAS
    2. Chang, Yang-Ming & Sanders, Shane & Walia, Bhavneet, 2015. "The costs of conflict: A choice-theoretic, equilibrium analysis," Economics Letters, Elsevier, vol. 131(C), pages 62-65.
    3. Dong, Zhiqiang & Zhang, Yongjing, 2016. "A sequential game of endowment effect and natural property rights," Economics Letters, Elsevier, vol. 149(C), pages 108-111.

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