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On the Escalation and De-Escalation of Conflict

  • Lacomba, Juan A.

    ()

    (Universidad de Granada)

  • Lagos, Francisco

    ()

    (Universidad de Granada)

  • Reuben, Ernesto

    ()

    (New York University, Abu Dhabi)

  • van Winden, Frans

    ()

    (University of Amsterdam)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7492.

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Length: 45 pages
Date of creation: Jul 2013
Date of revision:
Publication status: published in: Games and Economic Behavior, 2014, 86, 40-57
Handle: RePEc:iza:izadps:dp7492
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