Peace Agreements Without Commitment
In this paper we present a model of war between two rational and completely informed players. We show that in the absence of binding agreements war can be avoided in many cases by one player transferring money to the other player. In most cases, the "rich" country transfers part of her money to the "poor" country. Only when the military proficiency of the "rich" country is sufficiently great, it could be that the "poor" country can stop the war by transfering part of its resources to the "rich" country.
|Date of creation:||Mar 2008|
|Contact details of provider:|| Postal: Ramon Trias Fargas, 25-27, 08005 Barcelona|
Phone: +34 93 542-1222
Fax: +34 93 542-1223
Web page: http://www.barcelonagse.eu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bester, Helmut & Konrad, Kai A., 2003.
"Easy targets and the timing of conflict,"
Center for European, Governance and Economic Development Research Discussion Papers
21, University of Goettingen, Department of Economics.
- Bester, Helmut & Konrad, Kai A., 2003.
"Easy targets and the timing of conflict
["Leichte Beute" und der Zeitpunkt eines Konflikts]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-28, Social Science Research Center Berlin (WZB).
- Bester, Helmut & Konrad, Kai A., 2004. "Easy Targets and the Timing of Conflict," CEPR Discussion Papers 4245, C.E.P.R. Discussion Papers.
- Bester, Helmut & Konrad, Kai A., 2003. "Easy targets and the timing of conflict
- van Damme,Eric, 1987.
"Stable equilibria and forward induction,"
Discussion Paper Serie A
128, University of Bonn, Germany.
- Nunn, Nathan, 2007.
"The Long-Term Effects of Africa's Slave Trades,"
4134, University Library of Munich, Germany.
- Daron Acemoglu, 2002.
"Why Not a Political Coase Theorem? Social Conflict, Commitment and Politics,"
NBER Working Papers
9377, National Bureau of Economic Research, Inc.
- Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
- Aumann, R. J. & Peleg, B., 1974. "A note on Gale's example," Journal of Mathematical Economics, Elsevier, vol. 1(2), pages 209-211, August.
- Michelle R. Garfinkel & Stergios Skaperdas, 2000. "Conflict without Misperceptions or Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 793-807, December.
- Michelle R Garfinkel & Stergios Skaperdas, 2001.
"Conflict Without Misperceptions or Incomplete Information: How the Future Matters,"
Levine's Working Paper Archive
563824000000000011, David K. Levine.
- Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
- Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(03), pages 379-414, June.
- Smith, Adam, 1776. "An Inquiry into the Nature and Causes of the Wealth of Nations," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number smith1776.
- Skaperdas, S., 1991.
"Cooperation, Conflict And Power In The Absence Of Property Rights,"
90-91-06a, California Irvine - School of Social Sciences.
- Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-39, September.
- Piccione, Michele & Rubinstein, Ariel, 2004. "The curse of wealth and power," Journal of Economic Theory, Elsevier, vol. 117(1), pages 119-123, July.
- Santiago Sanchez-Pages, 2005.
"On the Social Efficiency of Conflict,"
ESE Discussion Papers
97, Edinburgh School of Economics, University of Edinburgh.
- Jack Hirshleifer, 1991.
"The Paradox Of Power,"
Economics and Politics,
Wiley Blackwell, vol. 3(3), pages 177-200, November.
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-90, February.
- Enrico Spolaore & Alberto Alesina, 2001.
"War, Peace and the Size of Countries,"
Harvard Institute of Economic Research Working Papers
1937, Harvard - Institute of Economic Research.
- Michelle R. Garfinkel & Stergios Skaperdas, 2006.
"Economics of Conflict: An Overview,"
050623, University of California-Irvine, Department of Economics, revised Sep 2006.
- Gallini, Nancy T, 1984. "Deterrence by Market Sharing: A Strategic Incentive for Licensing," American Economic Review, American Economic Association, vol. 74(5), pages 931-41, December.
- Matthew O. Jackson & Massimo Morelli, 2007.
"Political Bias and War,"
American Economic Review,
American Economic Association, vol. 97(4), pages 1353-1373, September.
- Rajan, Raghuram G. & Zingales, Luigi, 2000.
"The tyranny of inequality,"
Journal of Public Economics,
Elsevier, vol. 76(3), pages 521-558, June.
- Raghuram G. Rajan & Luigi Zingales, 1999. "The Tyranny of Inequality," CRSP working papers 423, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Raghuram G. Rajan & Luigi Zingales, 1995. "The Tyranny of Inequality," NBER Working Papers 5396, National Bureau of Economic Research, Inc.
- Perez-Castrillo, J David & Verdier, Thierry, 1992. "A General Analysis of Rent-Seeking Games," Public Choice, Springer, vol. 73(3), pages 335-50, April.
- Alastair Smith & Allan C. Stam, 2004. "Bargaining and the Nature of War," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(6), pages 783-813, December.
- Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
- Richard Cornes & Roger Hartley, 2002.
"Asymmetric Contests with General Technologies,"
Keele Economics Research Papers
KERP 2002/22, Centre for Economic Research, Keele University.
- Christian Riis & Derek J. Clark, 1997. "Contest success functions: an extension," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(1), pages 201-204.
When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:340. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.