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Self-enforcing peace agreements that preserve the status quo

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  • Garfinkel, Michelle R.
  • Syropoulos, Constantinos

Abstract

On the basis of a single-period, guns-versus-butter, complete-information model in which two agents dispute control over an insecure portion of their combined output, we study the choice between a peace agreement that maintains the status quo without arming (or unarmed peace) and open conflict (or war) that is possibly destructive. With a focus on outcomes that are immune to both unilateral deviations and coalitional deviations, we find that, depending on war's destructive effects, the degree of output security and the initial distribution of resources, peace can, but need not necessarily, emerge in equilibrium. We also find that, ex ante resource transfers without commitments can improve the prospects for peace, but only when the configuration of parameters describing the degree of output security and the degree of war's destruction ensures the possibility of peace without such transfers at least for some sufficiently even initial resource distributions.

Suggested Citation

  • Garfinkel, Michelle R. & Syropoulos, Constantinos, 2021. "Self-enforcing peace agreements that preserve the status quo," Games and Economic Behavior, Elsevier, vol. 130(C), pages 148-178.
    • Handle: RePEc:eee:gamebe:v:130:y:2021:i:c:p:148-178
    DOI: 10.1016/j.geb.2021.07.012
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    1. Garfinkel, Michelle R. & Syropoulos, Constantinos, 2020. "Inequality and conflict: Burning resources to support peace," Economics Letters, Elsevier, vol. 197(C).
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    4. Garfinkel Michelle R. & Syropoulos Constantinos, 2018. "Rules for Dividing a Disputed Resource in the Context of the Classical Liberal Argument for Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(1), pages 1-16, February.
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    Cited by:

    1. Rabah Arezki & Markus Brueckner, 2021. "Natural Resources and Civil Conflict: The Role of Military Expenditures," JRFM, MDPI, vol. 14(12), pages 1-26, December.
    2. Garfinkel, Michelle R. & Syropoulos, Constantinos, 2020. "Inequality and conflict: Burning resources to support peace," Economics Letters, Elsevier, vol. 197(C).
    3. Garfinkel, Michelle & Syropoulos, Constantinos, 2022. "International Trade and Stable Resolutions of Resource Disputes," School of Economics Working Paper Series 2022-9, LeBow College of Business, Drexel University.

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    More about this item

    Keywords

    Disputes; Output insecurity; Destructive wars; Peaceful settlement; Unarmed peace;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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