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Give peace a chance: The effect of ownership and asymmetric information on peace

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  • Corchón, Luis C.
  • Yıldızparlak, Anıl

Abstract

We study the possibility of peace when two countries fight a war over the ownership of a resource. War is always the outcome of the game played by rational countries – under complete or asymmetric information – when there is no pre-established distribution of the resource among countries. When there is such a distribution of the resource, under complete information peace is feasible for some initial distributions of the resource, whereas under asymmetric information there are two classes of equilibria: Peaceful Equilibria, in which peace has a positive probability, and Aggressive Equilibria, which assign probability one to war. Surprisingly, a little asymmetric information may yield war.

Suggested Citation

  • Corchón, Luis C. & Yıldızparlak, Anıl, 2013. "Give peace a chance: The effect of ownership and asymmetric information on peace," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 116-126.
  • Handle: RePEc:eee:jeborg:v:92:y:2013:i:c:p:116-126
    DOI: 10.1016/j.jebo.2013.05.013
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    Cited by:

    1. De Luca, Giacomo & Sekeris, Petros G. & Vargas, Juan F., 2018. "Beyond divide and rule: Weak dictators, natural resources and civil conflict," European Journal of Political Economy, Elsevier, vol. 53(C), pages 205-221.
    2. Aniruddha Bagchi & João Ricardo Faria & Timothy Mathews, 2019. "A model of a multilateral proxy war with spillovers," Public Choice, Springer, vol. 179(3), pages 229-248, June.

    More about this item

    Keywords

    Peace; War; Asymmetric information; Contests; Litigation;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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