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The Stability Of Anarchy And Breakdown Of Production

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  • Kjell Hausken

Abstract

In Hirshleifer's (1995) model for unitary actors, combined fighting/production abruptly breaks down when inter-group decisiveness of fighting is above a certain value (above one) or income requirements are not met. Accounting for the collective action problem, this article gives the opposite result that fighting/production is stable also for large decisiveness parameters (above one) and strict income requirements for each agent. The stable fighting/production equilibrium gets gradually easier to perturb off balance for high inter-group decisiveness, high costs of fighting, different fighting efficiencies, and equal group sizes. The equilibrium number of groups that can be sustained decreases in the inter-group decisiveness and increases in the cost of fighting.

Suggested Citation

  • Kjell Hausken, 2006. "The Stability Of Anarchy And Breakdown Of Production," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(6), pages 589-603.
    • Handle: RePEc:taf:defpea:v:17:y:2006:i:6:p:589-603
    DOI: 10.1080/10242690601025492
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    References listed on IDEAS

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    1. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-134, May.
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    7. repec:bla:econom:v:64:y:1997:i:253:p:101-17 is not listed on IDEAS
    8. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
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    7. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
    8. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.

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