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Opportunity Costs and the Probability of War in an Incomplete Information Game (With Comments by Lloyd Jeff Dumas)

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  • Polachek Solomon W

    (State University of New York at Binghamton)

  • Xiang Jun

    (University of Rochester and Rutgers University)

Abstract

This paper summarizes conclusions reached in Polachek and Xiang (International Organization, 2010). It shows how gains from trade decrease the probability of war in an incomplete information game. The result reaffirms how opportunity costs explain the inverse trade-conflict relationship found in current empirical literature on the subject. The ensuing discussion puts the result in the broader context of peacekeeping.

Suggested Citation

  • Polachek Solomon W & Xiang Jun, 2010. "Opportunity Costs and the Probability of War in an Incomplete Information Game (With Comments by Lloyd Jeff Dumas)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-6, June.
    • Handle: RePEc:bpj:pepspp:v:16:y:2010:i:1:n:3
    DOI: 10.2202/1554-8597.1188
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    References listed on IDEAS

    as
    1. Solomon William Polachek, 1980. "Conflict and Trade," Journal of Conflict Resolution, Peace Science Society (International), vol. 24(1), pages 55-78, March.
    2. Polachek Solomon W., 1999. "Conflict and Trade: An Economics Approach to Political International Interactions," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 5(2), pages 1-32, April.
    3. Polachek, Solomon W. & Seiglie, Carlos, 2007. "Trade, Peace and Democracy: An Analysis of Dyadic Dispute," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 31, pages 1017-1073, Elsevier.
    4. Polachek, Solomon & Xiang, Jun, 2010. "How Opportunity Costs Decrease the Probability of War in an Incomplete Information Game," International Organization, Cambridge University Press, vol. 64(1), pages 133-144, January.
    5. Gartzke, Erik & Li, Quan & Boehmer, Charles, 2001. "Investing in the Peace: Economic Interdependence and International Conflict," International Organization, Cambridge University Press, vol. 55(2), pages 391-438, April.
    Full references (including those not matched with items on IDEAS)

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