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Dynamic Winner-take-all Conflict

  • John W. Maxwell

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

  • Rafael Reuveny

    (School of Public and Environmental Affairs, Indiana University)

  • Jefferson Davis

    (Stat-Math, Indiana University)

This paper develops a model of dynamic conflict featuring probabilistic winner- take-all outcomes and compares its behavior to a model in which combatants emerge with a share of the conflict spoils. While these two models generate the same behavior in a one-shot game, we find that in a repeated conflict setting the winner-take-all model generates richer dynamics than the dynamics generated by the share model. Differences include outcomes that illustrate the rise and fall of great powers, the endogenous extinction of combatants, and frequent changes in the relative dominance of combatants. The model's behavior is compared to real world military, business and political conflict outcomes.

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File URL: http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2007-12-maxwell-reuveny-davis.pdf
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Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2007-12.

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Date of creation: 2007
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Handle: RePEc:iuk:wpaper:2007-12
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  1. Maxwell, John W. & Reuveny, Rafael, 2005. "Continuing conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 30-52, September.
    • John W. Maxwell & Rafael Reuveny, 2004. "Continuing Conflict," Working Papers 2004-27, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  2. Anderton, Charles H & Anderton, Roxane A & Carter, John R, 1999. "Economic Activity in the Shadow of Conflict," Economic Inquiry, Western Economic Association International, vol. 37(1), pages 166-79, January.
  3. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
  4. Rafael Reuveny & John W. Maxwell, . "Conflict and Renewable Resources," Working Papers 2004-26, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  5. Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-38, March.
  6. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
  7. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-94, July.
  8. Dan Usher, 1986. "The Dynastic Cycle and the Stationary State," Working Papers 671, Queen's University, Department of Economics.
  9. Michelle R Garfinkel & Stergios Skaperdas, 2001. "Conflict Without Misperceptions or Incomplete Information: How the Future Matters," Levine's Working Paper Archive 563824000000000011, David K. Levine.
  10. Baye, Michael R. & Hoppe, Heidrun C., 2003. "The strategic equivalence of rent-seeking, innovation, and patent-race games," Games and Economic Behavior, Elsevier, vol. 44(2), pages 217-226, August.
  11. Richard L. Fullerton & R. Preston McAfee, 1999. "Auctioning Entry into Tournaments," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 573-605, June.
  12. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
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