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Alliance Formation, Alliance Expansion, and the Core

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  • Sandler, Todd

Abstract

This article presents a simple cooperative game theory representation of alliance formation and expansion to counter a conventional threat along the allies' borders. Mutual defense gains, derived from allying, arise from interior borders that no longer require protection. Spatial and locational attributes of the allies are crucial when identifying the gains from mutual defense and the distribution of these gains. The same number of allies can have vastly different cores depending on their spatial configurations. Extensions to the baseline case consider transaction costs, natural defenses, guerrilla warfare, and risk concerns. An application to the NATO alliance indicates that the theory has much to say about which additional Partnership for Peace countries are likely to join NATO after the three Visegrad countries.
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Suggested Citation

  • Sandler, Todd, 1999. "Alliance Formation, Alliance Expansion, and the Core," Staff General Research Papers Archive 1669, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:1669
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    Cited by:

    1. Michael Finus & Raoul Schneider & Pedro Pintassilgo, 2011. "The Incentive Structure of Impure Public Good Provision – The Case of International Fisheries," Discussion Papers 1103, University of Exeter, Department of Economics.
    2. Dan Kovenock & Brian Roberson, 2012. "Coalitional Colonel Blotto Games with Application to the Economics of Alliances," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(4), pages 653-676, August.
    3. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, Elsevier.
    4. Noh, Suk Jae, 2002. "Resource distribution and stable alliances with endogenous sharing rules," European Journal of Political Economy, Elsevier, vol. 18(1), pages 129-151, March.
    5. David Rietzke & Brian Roberson, 2013. "The robustness of ‘enemy-of-my-enemy-is-my-friend’ alliances," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(4), pages 937-956, April.
    6. Michelle R. Garfinkel, 2004. "On the Stability of Group Formation: Managing the Conflict Within," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(1), pages 43-68, February.
    7. Finus, Michael & McGinty, Matthew, 2015. "The Anti-Paradox of Cooperation: Diversity Pays!," Department of Economics Working Papers 46599, University of Bath, Department of Economics.
    8. John Robst & Solomon Polachek & Yuan-Ching Chang, 2007. "Geographic Proximity, Trade, and International Conflict/Cooperation," Conflict Management and Peace Science, Peace Science Society (International), vol. 24(1), pages 1-24, February.
    9. Keith Hartley & Todd Sandler, 2000. "Defence and peace economics: A ten-year retrospective," Defence and Peace Economics, Taylor & Francis Journals, vol. 11(1), pages 1-16.
    10. Garfinkel, Michelle R., 2004. "Stable alliance formation in distributional conflict," European Journal of Political Economy, Elsevier, vol. 20(4), pages 829-852, November.

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