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Credibility and Reputation in Peacemaking

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  • Tony Addison
  • Mansoob Murshed

Abstract

The paper analyses credibility and reputation in the context of peace negotiations. Where war provides economic gains to one side, peace is not incentive compatible, and peace agreements will necessarily degenerate, as they become time inconsistent. Levels of conflict are an increasing function of greed and rents, but decreasing in the direct costs of war. In a multiple period framework there is some uncertainty regarding the type of negotiator and for high values of the discount rate more conflict is chosen.

Suggested Citation

  • Tony Addison & Mansoob Murshed, 2001. "Credibility and Reputation in Peacemaking," WIDER Working Paper Series DP2001-45, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-45
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