Conflict and Conflict Managment with Asymmetric Stakes (The Bad-Cop and the Good Cop part II)
This paper considers a partial equilibrium model of conflict where two asymmetric, rational and risk-neutral opponents evaluate differently the contested stake. Differently from common contest models, agents have the option of choosing a second instrument to affect the outcome of the conflict. The second instrument is assumed to capture positive investments in ‘conflict management’ - labelled as ‘talks’. It will be demonstrated that, under some conditions, an asymmetry in the evaluation of the stake can lead to a concession from one agent to the other. In particular, the agent with the higher evaluation of the stake would make a concession, proportional to the optimal choice of ‘talks’ . The existence of a concession paves the way for establishing a feasible settlement region (FSR) given that both parties can be better off while expending resources in ‘talks’. Eventually the basic model is extended in order to consider the existence of asymmetries in technological capabilities. Whenever the agents exhibit sufficiently asymmetric productive characteristics a FSR can be established even if a concession is not ensured. However a concession can enlarge the FSR. Finally, throughout the paper, the concept of entropy is applied as a tool for the measurement and evaluation of conflict and
|Date of creation:||Jan 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Halvor Mehlum & Karl Moene, 2002.
"Battlefields and Marketplaces,"
Development and Comp Systems
- Gil S. Epstein & Carsten Hefeker, 2003. "Lobbying contests with alternative instruments," Economics of Governance, Springer, vol. 4(1), pages 81-89, 04.
- J. Amegashie, 2006. "A contest success function with a tractable noise parameter," Public Choice, Springer, vol. 126(1), pages 135-144, January.
- Garoupa, Nuno R & Gata, Joao E, 2002.
" A Theory of International Conflict Management and Sanctioning,"
Springer, vol. 110(1-2), pages 41-65, January.
- Nuno Garoupa & Joao E. Gata, 2000. "A theory of international conflict management and sanctioning," Economics Working Papers 481, Department of Economics and Business, Universitat Pompeu Fabra.
- Nuno R. Garoupa & João E. Gata, 2000. "A Theory of International Conflict Management and Sanctioning," Working Papers Department of Economics 2000/11, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- 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.
- Garfinkel, Michelle R. & Skaperdas, Stergios, 2007.
"Economics of Conflict: An Overview,"
Handbook of Defense Economics,
- Maria Arbatskaya & Hugo Mialon, 2005. "Two-activity Contests," Emory Economics 0527, Department of Economics, Emory University (Atlanta).
- Raul Caruso, 2004. "A Trade Institution as a Peaceful Institution?," Others 0406003, EconWPA, revised 15 Dec 2004.
- Alesina, Alberto & Spolaore, Enrico, 2005.
"War, peace, and the size of countries,"
Journal of Public Economics,
Elsevier, vol. 89(7), pages 1333-1354, July.
- Enrico Spolaore & Alberto Alesina, 2001. "War, Peace and the Size of Countries," Harvard Institute of Economic Research Working Papers 1937, Harvard - Institute of Economic Research.
- Spolaore, Enrico & Alesina, Alberto, 2005. "War, Peace, and the Size of Countries," Scholarly Articles 4553002, Harvard University Department of Economics.
- Garance Genicot & Stergios Skaperdas, 2002.
"Investing in Conflict Management,"
Journal of Conflict Resolution,
Peace Science Society (International), vol. 46(1), pages 154-170, February.
- Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May.
- Raul Caruso, 2005. "Asimmetrie negli incentivi, equilibrio competititvo e impegno agonistico: distorsioni in presenza di doping e combine," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 1(3), pages 13-38, Dicembre.
- Christian Riis & Derek J. Clark, 1997. "Contest success functions: an extension," Economic Theory, Springer, vol. 11(1), pages 201-204.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1438. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.