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Proxy wars

Author

Listed:
  • Konyukhovskiy, Pavel V.
  • Grigoriadis, Theocharis

Abstract

Proxy wars are a key pattern of political conflict and interstate competition. Rather than resorting to direct conflicts, which are costly and entail a higher level of uncertainty, governments may opt for proxy wars, which may last longer, but are less costly and render them more immune to exogenous shocks. We start with the modeling of a direct war with two players where a static equilibrium may be neither realizable nor sustainable in the long run. Then, we offer a model of proxy war where the proposed equilibria are realizable, but not always sustainable in the long run. The consolidation level of the double principal-agent relationship predicts the continuation of conflict and thus the emergence of peace.

Suggested Citation

  • Konyukhovskiy, Pavel V. & Grigoriadis, Theocharis, 2018. "Proxy wars," Discussion Papers 2018/4, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:20184
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    References listed on IDEAS

    as
    1. Saunders, Elizabeth N., 2017. "No Substitute for Experience: Presidents, Advisers, and Information in Group Decision Making," International Organization, Cambridge University Press, vol. 71(S1), pages 219-247, April.
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    4. Robert Powell, 2013. "Monopolizing Violence and Consolidating Power," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 807-859.
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    More about this item

    Keywords

    non-cooperative games; principal-agent models; proxy conflicts;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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