Barilla, César; Gonçalves, Duarte - In: Theoretical economics : TE ; an open access journal in … 19 (2024) 1, pp. 365-405
We study a model in which two players with opposing interests try to alter a status quo through instability-generating actions. We show that instability can be used to secure longer-term durable changes, even if it is costly to generate and does not generate short-term gains. In equilibrium,...