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Conflict as a Part of the Bargaining Process

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  • Santiago Sánchez-Pagés

Abstract

This article investigates the use of conflict as a bargaining instrument. First, it illustrates the role of confrontation as a source of information by analysing a sample of colonial and imperial wars. Then, it explores a bargaining model with incomplete information where parties can choose the scope of the confrontation they may want to engage in. This model shows that conflict can have a double-edged effect: it may open the door to agreement when no agreement is feasible. But it can also create inefficiency when agreement is possible but the agents fight in order to improve their bargaining position. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

Suggested Citation

  • Santiago Sánchez-Pagés, 2009. "Conflict as a Part of the Bargaining Process," Economic Journal, Royal Economic Society, vol. 119(539), pages 1189-1207, July.
  • Handle: RePEc:ecj:econjl:v:119:y:2009:i:539:p:1189-1207
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    Citations

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    Cited by:

    1. Santiago Sanchez-Pages, 2009. "Bargaining and Conflict with Incomplete Information," ESE Discussion Papers 191, Edinburgh School of Economics, University of Edinburgh.
    2. Clara Ponsati & Santiago Sanchez-Pages, 2012. "Optimism and commitment: an elementary theory of bargaining and war," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 3(1), pages 157-179, March.
    3. Sambuddha Ghosh & Gabriele Gratton & Caixia Shen, 2015. "Intimidation: Linking Negotiation and Conflict," Discussion Papers 2015-07, School of Economics, The University of New South Wales.
    4. Anderson, Siwan & Genicot, Garance, 2015. "Suicide and property rights in India," Journal of Development Economics, Elsevier, vol. 114(C), pages 64-78.

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