Why is there so much Peace?
In this paper we change the structure of the basic conflict model. This makes it possible to found an economic theory of war and peace. Apart from few exceptions there exist no peace equilibria in the related literature of conflict theory. The aim of the paper is to fill this gap, because most parts of the world live in peace. Further we show that negotiations are possible to avoid a war. The main result is that war breaks out only if the distribution of resources and/or the effectiveness of weapons is sufficiently unequal.
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Volume (Year): 13 (2002)
Issue (Month): 1 ()
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References listed on IDEAS
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- Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-94, July.
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- Skaperdas, S., 1991. "Cooperation, Conflict And Power In The Absence Of Property Rights," Papers 90-91-06a, California Irvine - School of Social Sciences.
- Bester, Helmut & Wärneryd, Karl, 1998.
"Conflict Resolution Under Asymmetric Information,"
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- 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.
- Dowd, Kevin, 1997. "Anarchy, Warfare, and Social Order: Comment on Hirshleifer," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 648-51, June.
- Skaperdas, Stergios & Syropoulos, Constantinos, 1997. "The Distribution of Income in the Presence of Appropriative Activities," Economica, London School of Economics and Political Science, vol. 64(253), pages 101-17, February.
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