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Peace in an unequal world? Experimental evidence on the relationship between inequality and conflict in a guns-vs-butter setting

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  • Baier, Alexandra
  • Seelos, Sophia
  • Rittmannsberger, Thomas

Abstract

This study addresses the emergence of (unarmed) peace and investments in arms within a guns-vs-butter conflict setting. We introduce a novel feature within the conflict game and separate the decision to start a conflict and the investment in arms, following the theoretical framework of Garfinkel and Syropoulos (2021). Based on this model we experimentally examine the emergence of peace while varying resource inequality among conflicting parties. We find that inequality leads to more conflicts and higher investments in arms. Despite these trends, achieving a state of unarmed peace is rarely observed in both treatments. Our results highlight the critical role of trust in attaining peaceful outcomes and show that armed peace, although not an optimal strategy in either treatment, is one of the most frequently chosen decisions.

Suggested Citation

  • Baier, Alexandra & Seelos, Sophia & Rittmannsberger, Thomas, 2024. "Peace in an unequal world? Experimental evidence on the relationship between inequality and conflict in a guns-vs-butter setting," Games and Economic Behavior, Elsevier, vol. 147(C), pages 74-87.
    • Handle: RePEc:eee:gamebe:v:147:y:2024:i:c:p:74-87
    DOI: 10.1016/j.geb.2024.06.006
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    More about this item

    Keywords

    Conflict; Peace; Inequality; Guns-vs-butter; Contest; Laboratory experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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