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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
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    References listed on IDEAS

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    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. & Seiglie, Carlos, 2007. "Trade, Peace and Democracy: An Analysis of Dyadic Dispute," Handbook of Defense Economics, Elsevier.
    3. 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(01), pages 133-144, January.
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