Citation

Skaperdas S. Def. Peace Econ. 2006; 17(6): 657-676.

Copyright

(Copyright © 2006, Informa - Taylor and Francis Group)

DOI

10.1080/10242690601025617

PMID

unavailable

Abstract

I examine the determinants of conflict and settlement by embedding probabilistic contests in a bargaining framework. Different costly enforcement efforts (e.g. arming, litigation expenditures) induce different disagreement points and Pareto frontiers. After examining the incentives for settlement, I demonstrate how different division rules and bargaining norms have real, economic effects. I then analyze some sources of conflict. I emphasize long-term, strategic considerations by examining an illustrative model and discussing particular historical examples.