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Boycotts, power politics, or trust building: How to prevent conflict?

Listed author(s):
  • SCHOLLAERT, Arne
  • VAN DE GAER, Dirk

In a game of imperfect information, the paper analyzes whether different types of intervention by third parties can ensure that political (ethnic, religious, social, . . . ) groups within a country will pursue a cooperative strategy and how easy it is to predict their effects. We conclude that a strong boycott is the most effective instrument, then comes a weak boycott, followed by power politics. Finally, apart from requiring very detailed information on the relevant parameters of the economy, the use of confidence building measures has a serious flaw: it is incapable of averting civil war.

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File URL: http://dx.doi.org/10.1628/093245608784514491
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number 2043.

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Handle: RePEc:cor:louvrp:2043
Note: In : Journal of Institutional and Theoretical Economics, 164, 356-379, 2008
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  1. S. CLAEYS & G. LANINE & K. SCHOORs, 2005. "Bank Supervision Russian Style: Rules vs Enforcement and Tacit Objectives," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/307, Ghent University, Faculty of Economics and Business Administration.
  2. Arne Schollaert & Dirk Van de gaer, 2008. "Boycotts, Power Politics, or Trust Building: How to Prevent Conflict?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(2), pages 356-379, June.
  3. P. Everaert & G. Sarens, 2005. "Outsourcing bij Vlaamse Ondernemingen: een Exploratief Onderzoek," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/306, Ghent University, Faculty of Economics and Business Administration.
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