Bargaining Versus Fighting
I examine the determinants of conflict and settlement by embedding probabilistic contests in a bargaining framework. Different costly enforcement efforts (e.g., arming, litigation expenditures) induce different disagreement points and Pareto frontiers. After examining the incentives for settlement, I demonstrate how different division rules and bargaining norms have real, economic effects. I then analyze some sources of conflict. I emphasize long-term, strategic considerations by examining an illustrative model and discussing particular historical examples.
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"Explaining Conflict in Low-Income Countries: Incomplete Contracting in the Shadow of the Future,"
CESifo Working Paper Series
1636, CESifo Group Munich.
- Michael McBride & Stergios Skaperdas, 2005. "Explaining Conflict in Low-Income Countries: Incomplete Contracting in the Shadow of the Future," Working Papers 050606, University of California-Irvine, Department of Economics.
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CESifo Working Paper Series
762, CESifo Group Munich.
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Levine's Working Paper Archive
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"Comparing Bargaining Solutions in the Shadow of Conflict: How Norms Against Threats Can Have Real Effects,"
00-01-19, California Irvine - School of Social Sciences.
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