Incentives and Survival in Violent Conflicts
This paper analytically investigates the incentive scheme of perpetrators of violent conflicts. It provides a rational equilibrium framework to elicit how monetary incentives and survival considerations shape a combatant’s decision to participate in a conflict. In the model, a leader decides to award soldiers monetary incentives. Civilians finance the militia via donations and soldiers decide on the actual fighting and indulge in looting. We explore the scheduled decision-making that takes place on the path toward a violent conflict and study the principal–agent relationship that exists between the leader and the militia. In addition, we analyze the effect of several internal factors (productivity and survival risk) and external factors (relative economic resources, opponents’ military strength) on the intensity of the conflict. The model shows that soldiers fighting decisions are set by personal mortality risk and the level of identification with the cause of war. In addition, our results link between monetary incentives and participation in fighting and demonstrate a substitution effect of looting and donations as monetary incentives.
|Date of creation:||2011|
|Date of revision:|
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- 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.
- Jean-Paul Azam, 2002. "Looting and Conflict between Ethnoregional Groups," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 131-153, February.
- Michael L. Ross, 2004. "What Do We Know about Natural Resources and Civil War?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 337-356, May.
- Paul Collier & Anke Hoeffler & Dominic Rohner, 2006.
"Beyond Greed and Grievance: Feasibility and Civil War,"
CSAE Working Paper Series
2006-10, Centre for the Study of African Economies, University of Oxford.
- Paul Collier & Anke Hoeffler & Dominic Rohner, 2009. "Beyond greed and grievance: feasibility and civil war," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 1-27, January.
- Janus, Thorsten, 2012. "Natural resource extraction and civil conflict," Journal of Development Economics, Elsevier, vol. 97(1), pages 24-31.
- Jeremy M. Weinstein, 2005. "Resources and the Information Problem in Rebel Recruitment," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 598-624, August.
- Cramer, C., 2002. "Homo Economicus Goes to War: Methodological Individualism, Rational Choice and the Political Economy of War," World Development, Elsevier, vol. 30(11), pages 1845-1864, November.
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