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The value of rents and the likelihood of conflicts

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  • Khaled Bennour

Abstract

This paper extends the prey--predator model of Grossman and Kim (1995) to analyze the relation between the value of the contested rent and the emergence of a conflict. We show that an increase in the value of the rent makes the conflict equilibrium more likely. We also analyze the case where the valuation of the rent is different for the two players. We find, for example, that a conflict equilibrium may occur even though the predator has an important disadvantage in warfare. That's when its valuation of the rent is sufficiently high compare to that of the prey.
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  • Khaled Bennour, 2009. "The value of rents and the likelihood of conflicts," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(2), pages 163-173, June.
    • Handle: RePEc:spr:inrvec:v:56:y:2009:i:2:p:163-173
    DOI: 10.1007/s12232-009-0063-z
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    8. Olsson, Ola, 2007. "Conflict diamonds," Journal of Development Economics, Elsevier, vol. 82(2), pages 267-286, March.
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    11. Reuven Glick & Alan M. Taylor, 2010. "Collateral Damage: Trade Disruption and the Economic Impact of War," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 102-127, February.
    12. Garfinkel,Michelle R. & Skaperdas,Stergios (ed.), 1996. "The Political Economy of Conflict and Appropriation," Cambridge Books, Cambridge University Press, number 9780521560634, September.
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    Cited by:

    1. Giuseppe Dari-Mattiacci & Eric Langlais & Bruno Lovat & Francesco Parisi, 2013. "Asymmetries in Rent-Seeking," EconomiX Working Papers 2013-5, University of Paris Nanterre, EconomiX.
    2. repec:elg:eechap:15325_5 is not listed on IDEAS
    3. Libman, Alexander, 2009. "A small victorious war: political institutions and international conflict," MPRA Paper 17041, University Library of Munich, Germany.
    4. Matthew D. Mitchell, 2019. "Uncontestable favoritism," Public Choice, Springer, vol. 181(1), pages 167-190, October.
    5. Libman Alexander, 2010. "A Small Victorious War: Domestic Revolution and International Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(1), pages 1-25, December.
    6. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.

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    More about this item

    Keywords

    Appropriation; Rent; Conflict; Asymmetric valuations; D74; H56;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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