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The Economics of Coercion and Conflict: an Introduction

Author

Listed:
  • Harrison, Mark

    (University of Warwick)

Abstract

This chapter introduces the author’s selected papers on the economics of coercion and conflict. It defines coercion and conflict and relates them. In conflict, adversaries make costly investments in the means of coercion. The application of coercion does not remove choice but limits it to options that leave the victim worse off than before. Coercion and conflict are always political, but a number of key concepts from economics can help us understand them. These include rational choice, strategic interaction, increasing and diminishing returns, scale and state capacity, surplus extraction, and Type I errors. The chapter concludes that the economist’s toolkit, although not complete, is useful.

Suggested Citation

  • Harrison, Mark, 2013. "The Economics of Coercion and Conflict: an Introduction," CAGE Online Working Paper Series 151, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:151
    as

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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/151-2013_harrison.pdf
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    References listed on IDEAS

    as
    1. Andrei Markevich, 2011. "How Much Control is Enough? Monitoring and Enforcement under Stalin," Europe-Asia Studies, Taylor & Francis Journals, vol. 63(8), pages 1449-1468.
    2. Mark Harrison & Nikolaus Wolf, 2014. "The Frequency of Wars," World Scientific Book Chapters, in: THE ECONOMICS OF COERCION AND CONFLICT, chapter 5, pages 121-149, World Scientific Publishing Co. Pte. Ltd..
    3. Garfinkel, Michelle R. & Skaperdas, Stergios & Syropoulos, Constantinos, 2015. "Trade and insecure resources," Journal of International Economics, Elsevier, vol. 95(1), pages 98-114.
    4. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    5. de Mesquita, Bruce Bueno & Siverson, Randolph M., 1995. "War and the Survival of Political Leaders: A Comparative Study of Regime Types and Political Accountability," American Political Science Review, Cambridge University Press, vol. 89(4), pages 841-855, December.
    6. Greif,Avner, 2006. "Institutions and the Path to the Modern Economy," Cambridge Books, Cambridge University Press, number 9780521671347, September.
    7. Garfinkel, Michelle R. & Skaperdas, Stergios (ed.), 2012. "The Oxford Handbook of the Economics of Peace and Conflict," OUP Catalogue, Oxford University Press, number 9780195392777.
    8. Timothy Besley & Torsten Persson, 2009. "The Origins of State Capacity: Property Rights, Taxation, and Politics," American Economic Review, American Economic Association, vol. 99(4), pages 1218-1244, September.
    9. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 715-753.
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    12. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
    13. Mark Harrison, 2006. "An Economist Looks at Suicide Terrorism," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 7(3), pages 1-15, July.
    14. Houghton, David Patrick, 1996. "The Role of Analogical Reasoning in Novel Foreign-Policy Situations," British Journal of Political Science, Cambridge University Press, vol. 26(4), pages 523-552, October.
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    Keywords

    Coercion; Conflict; Games; Errors; Increasing Returns; Rational Choice; Scale; Surplus; Violence.;
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