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On the Escalation and De-Escalation of Conflict

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  • Lacomba, Juan A.

    (Universidad de Granada)

  • Lagos, Francisco Miguel

    (Universidad de Granada)

  • Reuben, Ernesto

    (New York University, Abu Dhabi)

  • van Winden, Frans

    (University of Amsterdam)

Abstract

We introduce three variations of the Hirshleifer-Skaperdas conflict game to study experimentally the effects of post-conflict behavior and repeated interaction on the allocation of effort between production and appropriation. Without repeated interaction, destruction of resources by defeated players can lead to lower appropriative efforts and higher overall efficiency. With repeated interaction, appropriative efforts are considerably reduced because some groups manage to avoid fighting altogether, often after substantial initial conflict. To attain peace, players must first engage in costly signaling by making themselves vulnerable and by forgoing the possibility to appropriate the resources of defeated opponents.

Suggested Citation

  • Lacomba, Juan A. & Lagos, Francisco Miguel & Reuben, Ernesto & van Winden, Frans, 2013. "On the Escalation and De-Escalation of Conflict," IZA Discussion Papers 7492, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7492
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    More about this item

    Keywords

    contests; appropriation; conflict; tournaments; rent-seeking; peace; escalation;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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