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Peace agreements without commitment

  • Corchón, Luis C.
  • Beviá, Carmen

In this paper we present a model of war between two rational and completely informed players. We show that in the absence of binding agreements war can be avoided in many cases by one player transferring money to the other player. In most cases, the "rich" country transfers part of her money to the "poor" country. Only when the military proficiency of the "rich" country is sufficiently great, it could be that the "poor" country can stop the war by transfering part of its resources to the "rich" country.

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File URL: http://e-archivo.uc3m.es/bitstream/handle/10016/2354/we081508.pdf?sequence=1
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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number we081508.

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Date of creation: Mar 2008
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Handle: RePEc:cte:werepe:we081508
Contact details of provider: Web page: http://www.eco.uc3m.es/

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