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

Author

Listed:
  • 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. Subhasish M Chowdhury & Dan Kovenock & David Rojo Arjona & Nathaniel T Wilcox, 2021. "Focality and Asymmetry in Multi-Battle Contests," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1593-1619.
    2. Hiller, Timo, 2017. "Friends and enemies: a model of signed network formation," Theoretical Economics, Econometric Society, vol. 12(3), September.
    3. Kris De Jaegher, 2021. "Common‐Enemy Effects: Multidisciplinary Antecedents And Economic Perspectives," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 3-33, February.
    4. Bozbay, Irem & Vesperoni, Alberto, 2018. "A contest success function for networks," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 404-422.
    5. Timo Hiller, 2012. "Friends and Enemies: A Model of Signed Network Formation," Bristol Economics Discussion Papers 12/629, School of Economics, University of Bristol, UK.
    6. Matthew O. Jackson & Stephen Nei, 2014. "Networks of Military Alliances, Wars, and International Trade," Working Papers 2014.46, Fondazione Eni Enrico Mattei.

    More about this item

    Keywords

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    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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