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Mediation and Peace

Listed author(s):
  • Johannes Horner
  • Massimo Morelli
  • Francesco Squintani

This paper applies mechanism design to conict resolution. We determine when and how unmediated communication and mediation reduce the ex ante probability of conflict in a game with asymmetric information. Mediation improves upon unmediated communication when the intensity of conict is high, or when asymmetric information is significant. The mediator improves upon unmediated communication by not precisely reporting information to conflicting parties, and precisely, by not revealing to a player with probability one that the opponent is weak. Arbitrators who can enforce settlements are no more effective than mediators who only make non-binding recommendations.

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File URL: http://www.dklevine.com/archive/refs4661465000000000133.pdf
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Paper provided by David K. Levine in its series Levine's Working Paper Archive with number 661465000000000133.

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Date of creation: 20 Aug 2010
Handle: RePEc:cla:levarc:661465000000000133
Contact details of provider: Web page: http://www.dklevine.com/

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  1. Powell, Robert, 2006. "War as a Commitment Problem," International Organization, Cambridge University Press, vol. 60(01), pages 169-203, January.
  2. Peter Cramton & Thomas R. Palfrey, 1995. "Ratifiable Mechanisms: Learning from Disagreement," Papers of Peter Cramton 95geb, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
  3. Myerson, Roger B. & Satterthwaite, Mark A., 1983. "Efficient mechanisms for bilateral trading," Journal of Economic Theory, Elsevier, vol. 29(2), pages 265-281, April.
  4. Schwarz, Michael & Sonin, Konstantin, 2005. "A Theory of Brinkmanship, Conflicts, and Commitments," CEPR Discussion Papers 5075, C.E.P.R. Discussion Papers.
  5. R. Aumann, 2010. "Subjectivity and Correlation in Randomized Strategies," Levine's Working Paper Archive 389, David K. Levine.
  6. Kennan, John & Wilson, Robert, 1993. "Bargaining with Private Information," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 45-104, March.
  7. Jacob Bercovitch & J. Theodore Anagnoson & Donnette L. Wille, 1991. "Some Conceptual Issues and Empirical Trends in the Study of Successful Mediation in International Relations," Journal of Peace Research, Peace Research Institute Oslo, vol. 28(1), pages 7-17, February.
  8. Green, Jerry R & Laffont, Jean-Jacques, 1987. "Posterior Implementability in a Two-Person Decision Problem," Econometrica, Econometric Society, vol. 55(1), pages 69-94, January.
  9. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
  10. Tomz, Michael, 2007. "Domestic Audience Costs in International Relations: An Experimental Approach," International Organization, Cambridge University Press, vol. 61(04), pages 821-840, October.
  11. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June.
  12. Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(03), pages 379-414, June.
  13. Banks, Jeffrey S. & Calvert, Randall L., 1992. "A battle-of-the-sexes game with incomplete information," Games and Economic Behavior, Elsevier, vol. 4(3), pages 347-372, July.
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