IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/481.html
   My bibliography  Save this paper

A theory of international conflict management and sanctioning

Author

Listed:
  • Nuno Garoupa
  • Joao E. Gata

Abstract

In this paper we analyze sanctioning policies in international law. We develop a model of international military conflict where the conflicting countries can be a target of international sanctions. These sanctions constitute an equilibrium outcome of an international political market for sanctions, where different countries trade political influence. We show that the level of sanctions in equilibrium is strictly positive but limited, in the sense that higher sanctions would exacerbate the military conflict, not reduce it. We then propose an alternative interpretation to the perceived lack of effectiveness of international sanctions, by showing that the problem might not be one of undersanctioning but of oversanctioning.

Suggested Citation

  • 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.
  • Handle: RePEc:upf:upfgen:481
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/481.pdf
    File Function: Whole Paper
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kaemfer, William H & Lowenberg, Anton D, 1988. "The Theory of International Economic Sanctions: A Public Choice Approach," American Economic Review, American Economic Association, vol. 78(4), pages 786-793, September.
    2. William H. Kaempfer & Anton D. Lowenberg, 1986. "A Model of the Political Economy of International Investment Sanctions: The Case of South Africa," Kyklos, Wiley Blackwell, vol. 39(3), pages 377-396, August.
    3. Michael D. Intriligator & Dagobert L. Brito, 1987. "Can Arms Races Lead to the Outbreak of War?," International Economic Association Series, in: Christian Schmidt (ed.), The Economics of Military Expenditures, chapter 9, pages 180-196, Palgrave Macmillan.
    4. Kaempfer, William H & Lowenberg, Anton D, 1989. "The Theory of International Economic Sanctions--A Public Choice Approach: Reply," American Economic Review, American Economic Association, vol. 79(5), pages 1304-1306, December.
    5. Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(3), pages 379-414, July.
    6. Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-134, May.
    7. Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
    8. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    9. Mueller,Dennis C. (ed.), 1997. "Perspectives on Public Choice," Cambridge Books, Cambridge University Press, number 9780521553773, October.
    10. Becker, Gary S., 1985. "Public policies, pressure groups, and dead weight costs," Journal of Public Economics, Elsevier, vol. 28(3), pages 329-347, December.
    11. Sanda Kaufman & George T. Duncan, 1992. "A Formal Framework for Mediator Mechanisms and Motivations," Journal of Conflict Resolution, Peace Science Society (International), vol. 36(4), pages 688-708, December.
    12. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Public Choice, Springer, vol. 63(2), pages 101-112, November.
    13. Peter A. G. VAN Bergeijk, 1989. "Success and Failure of Economic Sanctions," Kyklos, Wiley Blackwell, vol. 42(3), pages 385-404, August.
    14. Downs, George W. & Rocke, David M. & Barsoom, Peter N., 1996. "Is the good news about compliance good news about cooperation?," International Organization, Cambridge University Press, vol. 50(3), pages 379-406, July.
    15. Diehl, Paul F. & Reifschneider, Jennifer & Hensel, Paul R., 1996. "United Nations intervention and recurring conflict," International Organization, Cambridge University Press, vol. 50(4), pages 683-700, October.
    16. Garfinkel, Michelle R, 1990. "Arming as a Strategic Investment in a Cooperative Equilibrium," American Economic Review, American Economic Association, vol. 80(1), pages 50-68, March.
    17. Neary, Hugh M, 1997. "Equilibrium Structure in an Economic Model of Conflict," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 480-494, July.
    18. Kaempfer, William H & Lowenberg, Anton D, 1986. "A Model of the Political Economy of International Investment Sanctions: The Case of South Africa," Kyklos, Wiley Blackwell, vol. 39(3), pages 377-396.
    19. Durham, Yvonne & Hirshleifer, Jack & Smith, Vernon L., 2008. "The Paradox of Power," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 16, pages 127-137, Elsevier.
    20. Skaperdas, Stergios, 1991. "Conflict and Attitudes toward Risk," American Economic Review, American Economic Association, vol. 81(2), pages 116-120, May.
    21. Kenneth W. Abbott & Duncan Snidal, 1998. "Why States Act through Formal International Organizations," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(1), pages 3-32, February.
    22. Brito, Dagobert L. & Intriligator, Michael D., 1985. "Conflict, War, and Redistribution," American Political Science Review, Cambridge University Press, vol. 79(4), pages 943-957, December.
    23. Leidy, Michael P, 1989. "The Theory of International Economic Sanctions--A Public Choice Approach: Comment," American Economic Review, American Economic Association, vol. 79(5), pages 1300-1303, December.
    24. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, Oxford University Press, vol. 98(3), pages 371-400.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caruso, Raul, 2007. "Conflict and Conflict Managment with Asymmetric Stakes (The Bad-Cop and the Good Cop part II)," MPRA Paper 1438, University Library of Munich, Germany.
    2. Coyne,Christopher J., 2020. "Defense, Peace, and War Economics," Cambridge Books, Cambridge University Press, number 9781108724036, October.
    3. Gutmann, Jerg & Neuenkirch, Matthias & Neumeier, Florian, 2022. "Do China and Russia Undermine US Sanctions? Evidence from DiD and Event Study Estimation," ILE Working Paper Series 64, University of Hamburg, Institute of Law and Economics.
    4. Caruso Raul, 2006. "Conflict and Conflict Management with Interdependent Instruments and Asymmetric Stakes, (The Good-Cop and the Bad-Cop Game)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-55, September.
    5. Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    6. Konstantin Yanovskiy & Sergey Zhavoronkov, 2005. "Politico_economic Aspects of Combat with Terrorism," Research Paper Series, Gaidar Institute for Economic Policy, issue 82P, pages 116-116.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 22, pages 649-709, Elsevier.
    2. Yang-Ming Chang & Zijun Luo, 2017. "Endogenous Destruction In Conflict: Theory And Extensions," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 479-500, January.
    3. Martin Wittenberg, 2008. "To Prey Or Not To Prey? Welfare And Individual Losses In A Conflict Model1," South African Journal of Economics, Economic Society of South Africa, vol. 76(2), pages 239-265, June.
    4. Vahabi,Mehrdad, 2019. "The Political Economy of Predation," Cambridge Books, Cambridge University Press, number 9781107591370.
    5. Anderton,Charles H. & Carter,John R., 2009. "Principles of Conflict Economics," Cambridge Books, Cambridge University Press, number 9780521875578, December.
    6. Long, Iain W., 2015. "Better feared than loved: Reputations and the motives for conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 114(C), pages 46-61.
    7. McBride, Michael & Skaperdas, Stergios, 2014. "Conflict, settlement, and the shadow of the future," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 75-89.
    8. Giacomo De Luca & Petros G. Sekeris, 2013. "Deterrence in Contests," Economica, London School of Economics and Political Science, vol. 80(317), pages 171-189, January.
    9. Lacomba, Juan A. & Lagos, Francisco & Reuben, Ernesto & van Winden, Frans, 2014. "On the escalation and de-escalation of conflict," Games and Economic Behavior, Elsevier, vol. 86(C), pages 40-57.
    10. Hausken, Kjell, 2006. "Jack Hirshleifer: A Nobel Prize left unbestowed," European Journal of Political Economy, Elsevier, vol. 22(2), pages 251-276, June.
    11. Michelle R. Garfinkel & Stergios Skaperdas, 2000. "Conflict without Misperceptions or Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 793-807, December.
    12. Hoffmann, Magnus & Rota-Graziosi, Grégoire, 2012. "Endogenous timing in general rent-seeking and conflict models," Games and Economic Behavior, Elsevier, vol. 75(1), pages 168-184.
    13. Gonzalez, Francisco M., 2007. "Effective property rights, conflict and growth," Journal of Economic Theory, Elsevier, vol. 137(1), pages 127-139, November.
    14. Michelle R. Garfinkel, 2004. "On the Stability of Group Formation: Managing the Conflict Within," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(1), pages 43-68, February.
    15. Hoffmann, Magnus & Rota-Graziosi, Grégoire, 2012. "Endogenous timing in general rent-seeking and conflict models," Games and Economic Behavior, Elsevier, vol. 75(1), pages 168-184.
    16. Eggert, Wolfgang & Itaya, Jun-ichi & Mino, Kazuo, 2011. "A dynamic model of conflict and appropriation," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 167-182.
    17. Hwang, Sung-Ha, 2012. "Technology of military conflict, military spending, and war," Journal of Public Economics, Elsevier, vol. 96(1), pages 226-236.
    18. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July.
    19. John W. Maxwell & Rafael Reuveny & Jefferson Davis, 2007. "Dynamic Winner-take-all Conflict," Working Papers 2007-12, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    20. Maxwell, John W. & Reuveny, Rafael, 2005. "Continuing conflict," Journal of Economic Behavior & Organization, Elsevier, vol. 58(1), pages 30-52, September.
      • John W. Maxwell & Rafael Reuveny, 2004. "Continuing Conflict," Working Papers 2004-27, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.

    More about this item

    Keywords

    Conflict management; international sanctions; arms embargo; international political market; pressure groups;
    All these keywords.

    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
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.econ.upf.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.