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The Fate Of Disputed Territories: An Economic Analysis

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  • Yang-Ming Chang
  • Joel Potter
  • Shane Sanders

Abstract

This paper presents a simple model to characterize the outcome of a land dispute between two rival parties using a Stackelberg game. Unlike Gershenson and Grossman (2000), we assume that the opposing parties have access to different technologies for challenging and defending in conflict. We derive the conditions under which territorial conflict between the two parties is less likely to persist indefinitely. Allowing for an exogenous destruction term as in Garfinkel and Skaperdas (2000), we show that, when the nature of conflict becomes more destructive, the likelihood of a peaceful outcome, in which the territory's initial possessor deters the challenging party, increases if the initial possessor holds more intrinsic value for the disputed land. Following Siqueira (2003), our model has policy implications for peace through third-party intervention.

Suggested Citation

  • Yang-Ming Chang & Joel Potter & Shane Sanders, 2007. "The Fate Of Disputed Territories: An Economic Analysis," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(2), pages 183-200.
    • Handle: RePEc:taf:defpea:v:18:y:2007:i:2:p:183-200
    DOI: 10.1080/10242690600853373
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    References listed on IDEAS

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    1. 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.
    2. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    3. HÃ¥vard Hegre, 2004. "The Duration and Termination of Civil War," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 243-252, May.
    4. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
    5. Paul Collier & Anke Hoeffler & Måns Söderbom, 2004. "On the Duration of Civil War," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 253-273, May.
    6. 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.
    7. James D. Fearon, 2004. "Why Do Some Civil Wars Last So Much Longer than Others?," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(3), pages 275-301, May.
    8. Jack Hirshleifer, 1989. "Conflict and rent-seeking success functions: Ratio vs. difference models of relative success," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 251-262, Springer.
    9. Peter Stauvermann, 2002. "Why is there so much Peace?," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(1), pages 61-75.
    10. repec:bla:econom:v:69:y:2002:i:274:p:185-206 is not listed on IDEAS
    11. Kevin Siqueira, 2003. "Conflict and third-party intervention," Defence and Peace Economics, Taylor & Francis Journals, vol. 14(6), pages 389-400.
    12. Tuomas Forsberg, 1996. "Explaining Territorial Disputes: From Power Politics to Normative Reasons," Journal of Peace Research, Peace Research Institute Oslo, vol. 33(4), pages 433-449, November.
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    Cited by:

    1. Chang, Yang-Ming & Sanders, Shane & Walia, Bhavneet, 2015. "The costs of conflict: A choice-theoretic, equilibrium analysis," Economics Letters, Elsevier, vol. 131(C), pages 62-65.
    2. Boudreau, James W. & Sanders, Shane, 2015. "Choosing “Flawed” aggregation rules: The benefit of social choice violations in a league that values competitive balance," Economics Letters, Elsevier, vol. 137(C), pages 106-108.
    3. Marek Loužek, 2009. "Ekonomie bezpečnosti - jsou teroristé racionální? [Economics of security - are terrorists rational?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(2), pages 177-193.
    4. Gupta, Rupayan, 2008. "The Effect of Opportunity Cost and Pacifism on Protests in Occupied Regions," MPRA Paper 24015, University Library of Munich, Germany, revised 31 Apr 2010.
    5. 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.
    6. Chang Yang-Ming & Sanders Shane D., 2009. "Corruption on the Court: The Causes and Social Consequences of Point-Shaving in NCAA Basketball," Review of Law & Economics, De Gruyter, vol. 5(1), pages 269-291, May.
    7. Munshi, Soumyanetra, 2020. "Violence amidst virus: A Game-theoretic exploration of conflict during a pandemic," MPRA Paper 102508, University Library of Munich, Germany.
    8. Yang-Ming Chang, 2009. "Strategic altruistic transfers and rent seeking within the family," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(4), pages 1081-1098, October.

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