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Conflict, Settlement, and the Shadow of the Future

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  • Michael McBride

    (Department of Economics, University of California-Irvine)

  • Stergios Skaperdas

    (Department of Economics, University of California-Irvine)

Abstract

In many instances of potential violent or non-violent conflict, the future strategic positions of adversaries are very different when there is open conflict than when there is settlement. Then, we show that as the future becomes more important, open conflict becomes more likely than settlement. We discuss the applicability of this finding in war, litigation, and other settings, and test it it in a laboratory experiment. We find that subjects are more likely to engage in risky conflict as the future becomes more important.

Suggested Citation

  • Michael McBride & Stergios Skaperdas, 2009. "Conflict, Settlement, and the Shadow of the Future," Working Papers 080922, University of California-Irvine, Department of Economics.
    • Handle: RePEc:irv:wpaper:080922
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    More about this item

    Keywords

    Conflict; Litigation; Property rights; Folk theorem;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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