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The Robustness of ‘Enemy-of-My-Enemy-is-My-Friend’ Alliances

Author

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  • David Rietzke
  • Brian Roberson

Abstract

This paper examines the robustness of alliance formation in a three-player, two-stage game in which each of two players compete against a third player in disjoint sets of contests. Although the players with the common opponent share no common interests, we find that under the lottery contest success function (CSF) there exists a range of parameter configurations in which the players with the common opponent have incentive to form an alliance involving a pre-conflict transfer of resources. Models that utilize the lottery CSF typically yield qualitatively different results from those arising in models with the auction CSF (Fang 2002). However, under the lottery and the auction CSFs, the parameter configurations within which players with a common opponent form an alliance are closely related. Our results, thus, provide a partial robustness result for ‘enemy-of-my-enemy-is-my-friend’ alliances.

Suggested Citation

  • David Rietzke & Brian Roberson, 2010. "The Robustness of ‘Enemy-of-My-Enemy-is-My-Friend’ Alliances," Purdue University Economics Working Papers 1258, Purdue University, Department of Economics.
  • Handle: RePEc:pur:prukra:1258
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    Cited by:

    1. Jackson, Matthew O. & Nei, Stephen, 2014. "Networks of Military Alliances, Wars, and International Trade," Research Papers 3097, Stanford University, Graduate School of Business.
    2. Subhasish M. Chowdhury & Dan Kovenock & David Rojo Arjona & Nathaniel T. Wilcox, 2016. "Focality and asymmetry in multi-battle contests," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-12, School of Economics, University of East Anglia, Norwich, UK..
    3. Timo Hiller, 2012. "Friends and Enemies: A Model of Signed Network Formation," Bristol Economics Discussion Papers 12/629, Department of Economics, University of Bristol, UK.
    4. Hiller, Timo, 2017. "Friends and enemies: a model of signed network formation," Theoretical Economics, Econometric Society, vol. 12(3), September.

    More about this item

    Keywords

    Alliance Formation; Contests; Economics of Alliances; Conflict;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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