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It Takes Two: An Explanation of the Democratic Peace

Author

Listed:
  • Levy, Gilat
  • Razin, Ronny

Abstract

In this Paper, we provide an explanation of the democratic peace hypothesis, i.e., the observation that democracies rarely fight one another. We show that in the presence of information asymmetries and strategic complements, the strategic interaction between two democracies differs from any other dyad. In our model, two democracies induce the highest probability of peaceful resolution of conflicts. But it takes two for peace; one democracy involved in a conflict does not necessarily increase the probability of a peaceful resolution compared to a conflict between two non-democratic regimes.

Suggested Citation

  • Levy, Gilat & Razin, Ronny, 2003. "It Takes Two: An Explanation of the Democratic Peace," CEPR Discussion Papers 3947, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:3947
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    References listed on IDEAS

    as
    1. Lones Smith & Ennio Stacchetti, 2002. "Aspirational Bargaining," Game Theory and Information 0201003, University Library of Munich, Germany.
    2. repec:fth:stanho:e-89-7 is not listed on IDEAS
    3. Farrell, Joseph & Gibbons, Robert, 1989. "Cheap Talk with Two Audiences," American Economic Review, American Economic Association, vol. 79(5), pages 1214-1223, December.
    4. de Mesquita, Bruce Bueno & Morrow, James D. & Siverson, Randolph M. & Smith, Alastair, 1999. "An Institutional Explanation of the Democratic Peace," American Political Science Review, Cambridge University Press, vol. 93(4), pages 791-807, December.
    5. Fearon, James D., 1994. "Domestic Political Audiences and the Escalation of International Disputes," American Political Science Review, Cambridge University Press, vol. 88(3), pages 577-592, September.
    6. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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