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All-pay auctions as models for military annexation

Author

Listed:
  • Benjamin Kang

    (Massachusetts Institute of Technology)

  • James Unwin

    (University of Illinois at Chicago
    University of California, Berkeley & Theoretical Physics Group, LBNL & Mathematics Sciences Research Institute)

Abstract

We explore an application of all-pay auctions to model territorial annexation. Specifically, in the model we consider the expected resource, production, and military power are public information, but actual resource levels are private knowledge. We consider the resource transfer at the end of such a competition which deprives the weaker country of some fraction of its original resources. We derive the quasi-equilibria strategies for two country conflicts under different scenarios.

Suggested Citation

  • Benjamin Kang & James Unwin, 2022. "All-pay auctions as models for military annexation," Letters in Spatial and Resource Sciences, Springer, vol. 15(2), pages 145-160, August.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:2:d:10.1007_s12076-022-00306-8
    DOI: 10.1007/s12076-022-00306-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Conflict; War; All-pay auction;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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