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Information, Reputation and Ethnic Conflict

  • Rohner, D.

Empirical studies have found ethnic cleavages to play an important role in the occurrence of civil conflict. Surprisingly, theoretical research on ethnic con.ict has been very scarce. In the present contribution a theoretical model of reputation and ethnic conflict is built. Depending on the information structure and the reputation cost of defecting, economic interaction can either result in (peaceful) trade or in appropriative conflict. Ethnic divisions affect the reputation cost of defection and therefore influence the conflict risk. It is shown what respective effects ethnic fractionalisation, polarisation and segregation have on the risk of conflict.

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File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/cwpe0658.pdf
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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0658.

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Length: 29
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:cam:camdae:0658
Note: Ec
Contact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm

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  1. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
  2. Joan Esteban & Debraj Ray, 2007. "Polarization, Fractionalization and Conflict," Working Papers 312, Barcelona Graduate School of Economics.
  3. Tirole, Jean, 1994. ""A Theory of Collective Reputations" with Applications to the Persistence of Corruption and to Firm Quality," IDEI Working Papers 38, Institut d'Économie Industrielle (IDEI), Toulouse.
  4. Joan Esteban & Debraj Ray, 2008. "On the Salience of Ethnic Conflict," American Economic Review, American Economic Association, vol. 98(5), pages 2185-2202, December.
  5. Joan Esteban & Debraj Ray, 2011. "A Model Of Ethnic Conflict," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 496-521, 06.
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  7. Francesco Caselli & Wilbur John Coleman II, 2008. "On the Theory of Ethnic Conflict," CEDI Discussion Paper Series 08-08, Centre for Economic Development and Institutions(CEDI), Brunel University.
  8. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
  9. Jos� G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
  10. Rohner, Dominic, 2006. "Beach holiday in Bali or East Timor? Why conflict can lead to under- and overexploitation of natural resources," Economics Letters, Elsevier, vol. 92(1), pages 113-117, July.
  11. Collier, Paul & Hoeffler, Anke, 2000. "Greed and grievance in civil war," Policy Research Working Paper Series 2355, The World Bank.
  12. Greif, Avner & Milgrom, Paul & Weingast, Barry R, 1994. "Coordination, Commitment, and Enforcement: The Case of the Merchant Guild," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 745-76, August.
  13. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
  14. Avinash Dixit, 2003. "Trade Expansion and Contract Enforcement," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1293-1317, December.
  15. Gartzke, Erik & Li, Quan & Boehmer, Charles, 2001. "Investing in the Peace: Economic Interdependence and International Conflict," International Organization, Cambridge University Press, vol. 55(02), pages 391-438, March.
  16. Francesco Caselli & Wilbur John Coleman II, 2006. "On the theory of ethnic conflict," LSE Research Online Documents on Economics 3561, London School of Economics and Political Science, LSE Library.
  17. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
  18. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
  19. Basu, Kaushik, 2005. "Racial Conflict and the Malignancy of Identity," Working Papers 05-02, Cornell University, Center for Analytic Economics.
  20. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
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