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The Fate Of Disputed Territories: An Economic Analysis

Author

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  • Yang-Ming Chang
  • Joel Potter
  • Shane Sanders

Abstract

This paper presents a simple model to characterize the outcome of a land dispute between two rival parties using a Stackelberg game. Unlike Gershenson and Grossman (2000), we assume that the opposing parties have access to different technologies for challenging and defending in conflict. We derive the conditions under which territorial conflict between the two parties is less likely to persist indefinitely. Allowing for an exogenous destruction term as in Garfinkel and Skaperdas (2000), we show that, when the nature of conflict becomes more destructive, the likelihood of a peaceful outcome, in which the territory's initial possessor deters the challenging party, increases if the initial possessor holds more intrinsic value for the disputed land. Following Siqueira (2003), our model has policy implications for peace through third-party intervention.

Suggested Citation

  • Yang-Ming Chang & Joel Potter & Shane Sanders, 2007. "The Fate Of Disputed Territories: An Economic Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(2), pages 183-200.
  • Handle: RePEc:taf:defpea:v:18:y:2007:i:2:p:183-200 DOI: 10.1080/10242690600853373
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    References listed on IDEAS

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    6. Benoit, Emile, 1978. "Growth and Defense in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 26(2), pages 271-280, January.
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    8. Ram, Rati, 1986. "Government Size and Economic Growth: A New Framework and Some Evidencefrom Cross-Section and Time-Series Data," American Economic Review, American Economic Association, pages 191-203.
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    Cited by:

    1. repec:bla:ecinqu:v:55:y:2017:i:1:p:479-500 is not listed on IDEAS
    2. Chang, Yang-Ming & Sanders, Shane & Walia, Bhavneet, 2015. "The costs of conflict: A choice-theoretic, equilibrium analysis," Economics Letters, Elsevier, vol. 131(C), pages 62-65.
    3. Boudreau, James W. & Sanders, Shane, 2015. "Choosing “Flawed” aggregation rules: The benefit of social choice violations in a league that values competitive balance," Economics Letters, Elsevier, vol. 137(C), pages 106-108.
    4. Chang Yang-Ming & Sanders Shane D., 2009. "Corruption on the Court: The Causes and Social Consequences of Point-Shaving in NCAA Basketball," Review of Law & Economics, De Gruyter, vol. 5(1), pages 269-291, May.
    5. Yang-Ming Chang, 2009. "Strategic altruistic transfers and rent seeking within the family," Journal of Population Economics, Springer;European Society for Population Economics, pages 1081-1098.
    6. Gupta, Rupayan, 2008. "The Effect of Opportunity Cost and Pacifism on Protests in Occupied Regions," MPRA Paper 24015, University Library of Munich, Germany, revised 31 Apr 2010.

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    Keywords

    Disputed territories; Conflict; Arming; Deterrence; War; Peace;

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