Conflict and negotiation: a game theoretical approach
We study economic conflicts using a game theoretical approach. We model a conflict between twoagents where each one has two possible strategies: cease-fire or neglect the truce. Under thissetting, we use the concept of pre-donations, namely, a redefinition of the game where agentscommit to transfer a share of their output to the other agent (Sertel, 1992), and explain under whichconditions a system of pre-donations can facilitate a truce. We find that for conflicts involving highcosts there is a distributive mechanism, acceptable for both parties, such that, the best strategy forboth parties is Cease-Fire. However, in many cases there are no sufficient conditions for the schemeor pre-donations to be effective. We also analyze some limitations of this framework and extend themodel in order to deal with some of these flaws. Finally, in order to illustrate the relevance of thetheoretical results we briefly describe some of the circumstances that characterized the negotiationprocesses between the Colombian government and different illegal groups.
|Date of creation:||02 Nov 2008|
|Date of revision:|
|Contact details of provider:|| |
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.:
- Grossman, Herschel I, 1991. "A General Equilibrium Model of Insurrections," American Economic Review, American Economic Association, vol. 81(4), pages 912-21, September.
- Armando Montenegro & Carlos Esteban Posada, .
"Criminalidad en Colombia,"
Borradores de Economia
004, Banco de la Republica de Colombia.
- 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.
- Michelle R. Garfinkel, 2004.
"On the Stability of Group Formation: Managing the Conflict Within,"
Conflict Management and Peace Science,
Peace Science Society (International), vol. 21(1), pages 43-68, February.
- Michelle R. Garfinkel, 2003. "On the Stability of Group Formation: Managing the Conflict Within," Public Economics 0312005, EconWPA, revised 04 Mar 2004.
- Daniel Mejía & Carlos Posada, .
"Capital Destruction, Optimal Defense and Economic Growth,"
Borradores de Economia
257, Banco de la Republica de Colombia.
- Daniel Mejía & Carlos Esteban Posada, 2003. "Capital Destruction, Optimal Defense and Economic Growth," BORRADORES DE ECONOMIA 002096, BANCO DE LA REPÚBLICA.
- Jack Hirshleifer, 1990.
"The Technology of Conflict as an Economic Activity,"
UCLA Economics Working Papers
597, UCLA Department of Economics.
- Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
- Veneta Andonova & Hernando Zuleta, 2007. "The effect of enforcement on human resources practices: A case study in rural Colombia," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 344 - 353, April.
- Oeindrila Dube & Juan F. Vargas, 2006.
"Resource Curse in Reverse: The Coffee Crisis and Armed Conflict in Colombia,"
Royal Holloway, University of London: Discussion Papers in Economics
06/05, Department of Economics, Royal Holloway University of London, revised Dec 2006.
- Oeindrila Dube & Juan Fernando Vargas, 2006. "Resource curse in reverse: The coffee crisis and armed conflict in Colombia," DOCUMENTOS CEDE 003460, UNIVERSIDAD DE LOS ANDES-CEDE.
- Oeindrila Dube & Juan F. Vargas, 2006. "Are All Resources Cursed? Coffee, Oil and Armed Confict in Colombia," DOCUMENTOS DE CERAC 002024, CERAC -CENTRO DE RECURSOS PARA EL ANÁLISIS DE CONFLICTOS-.
- Barron, Patrick & Kaiser, Kai & Pradhan, Menno, 2004. "Local conflict in Indonesia : Measuring incidence and identifying patterns," Policy Research Working Paper Series 3384, The World Bank.
- Raul Caruso, 2004. "A Trade Institution as a Peaceful Institution?," Others 0406003, EconWPA, revised 15 Dec 2004.
- Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996.
"Political Instability and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 1(2), pages 189-211, June.
- Skaperdas, Stergios & Syropoulos, Constantinos, 1997. "The Distribution of Income in the Presence of Appropriative Activities," Economica, London School of Economics and Political Science, vol. 64(253), pages 101-17, February.
- Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-94, July.
- Roubini, Nouriel & Swagel, Phillip & Ozler, Sule & Alesina, Alberto, 1996.
"Political Instability and Economic Growth,"
4553024, Harvard University Department of Economics.
- Hernando Zuleta & Veneta Andonova, 2006. "Conflict, wages, and multiple equilibria, a private path to prosperity," DOCUMENTOS DE TRABAJO 002181, UNIVERSIDAD DEL ROSARIO.
- Charles H. Anderton, 2000. "An Insecure Economy under Ratio and Logistic Conflict Technologies," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 823-838, December.
- Roemer, John E., 1998. "Why the poor do not expropriate the rich: an old argument in new garb," Journal of Public Economics, Elsevier, vol. 70(3), pages 399-424, December.
- Azam, Jean-Paul, 1995. "How to Pay for the Peace? A Theoretical Framework with References to African Countries," Public Choice, Springer, vol. 83(1-2), pages 173-84, April.
- Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
- Sertel, Murat R., 1992. "The Nash bargaining solution manipulated by pre-donations is Talmudic," Economics Letters, Elsevier, vol. 40(1), pages 45-55, September.
- Hirshleifer, Jack, 1987. "Economic Behaviour in Adversity," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226342825.
- Grossman, Herschel I, 1994. "Production, Appropriation, and Land Reform," American Economic Review, American Economic Association, vol. 84(3), pages 705-12, June.
When requesting a correction, please mention this item's handle: RePEc:col:000092:005148. 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: (Facultad de Economía)
If references are entirely missing, you can add them using this form.