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The value of rents and the likelihood of conflicts

  • Khaled Bennour

    ()

This paper extends the prey--predator model of Grossman and Kim (1995) to analyze the relation between the value of the contested rent and the emergence of a conflict. We show that an increase in the value of the rent makes the conflict equilibrium more likely. We also analyze the case where the valuation of the rent is different for the two players. We find, for example, that a conflict equilibrium may occur even though the predator has an important disadvantage in warfare. That's when its valuation of the rent is sufficiently high compare to that of the prey.

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File URL: http://hdl.handle.net/10.1007/s12232-009-0063-z
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Article provided by Springer in its journal International Review of Economics.

Volume (Year): 56 (2009)
Issue (Month): 2 (June)
Pages: 163-173

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Handle: RePEc:spr:inrvec:v:56:y:2009:i:2:p:163-173
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  1. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
  2. Olsson, Ola, 2007. "Conflict diamonds," Journal of Development Economics, Elsevier, vol. 82(2), pages 267-286, March.
  3. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
  4. Caselli, Francesco & Coleman II, Wilbur John, 2006. "On the Theory of Ethnic Conflict," CEPR Discussion Papers 5622, C.E.P.R. Discussion Papers.
  5. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank.
  6. Reuven Glick & Alan M. Taylor, 2010. "Collateral Damage: Trade Disruption and the Economic Impact of War," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 102-127, February.
  7. Konrad, Kai A., 2001. "Investment in the Absence of Property Rights: The Role of Incumbency Advantages," CEPR Discussion Papers 3050, C.E.P.R. Discussion Papers.
  8. Frode Meland & Odd Rune Straume, 2006. "Outsourcing in Contests," CESifo Working Paper Series 1658, CESifo Group Munich.
  9. Stein, William E, 2002. " Asymmetric Rent-Seeking with More Than Two Contestants," Public Choice, Springer, vol. 113(3-4), pages 325-36, December.
  10. Matthew J. Baker, 2003. "An Equilibrium Conflict Model of Land Tenure in Hunter-Gatherer Societies," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 124-173, February.
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