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Mobility and Conflict

  • Sourav Bhattacharya
  • Joyee Deb
  • Tapas Kundu

We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the right to allocate societys resources, and we allow for costly intergroup mobility. The winning group offers an allocation, that the opposition can either accept, or reject and wage conflict. Expropriating a large share of resources increases political strength by attracting opposition members, but such economic exclusion implies lower per capita shares and higher risk of conflict. In equilibrium, allocations are non-monotonic in the cost of mobility. Moreover, limited commitment with respect to mobility gives rise to inefficient conflict in equilibrium.

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Paper provided by New York University, Leonard N. Stern School of Business, Department of Economics in its series Working Papers with number 11-20.

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Date of creation: 2011
Date of revision:
Handle: RePEc:ste:nystbu:11-20
Contact details of provider: Postal: New York University, Leonard N. Stern School of Business, Department of Economics, 44 West 4th Street, New York, NY 10012-1126
Phone: (212) 998-0860
Fax: (212) 995-4218
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