We propose a model of cycles of conflict and distrust. Overlapping generations of agents from two groups sequentially … actions. Good actions may be misperceived as bad and information about past actions is limited. Conflict spirals start as a …

A classical theme in social analysis views economic class divisions as the main cause of social conflict. Yet many, if … highlights the perverse synergy of economic inequality within ethnic groups, and its role in the salience of ethnic conflict. In … class, conflict may be focal, and precisely in the presence of economic inequality. (JEL D72, D74) …

. In the third, there is a high probability of conflict. If commitment attempts succeed with probability q < 1, the unique … outcome that survives iterated strict dominance entails conflict with probability q2. When c = 0, analogous results hold if …

effort and expected profits decline gradually but recover instantaneously. To manage a conflict, the manager uses a … combination of informal promises and formal commitments that evolves with the duration of the conflict. Finally, we show that … liquidity constraints limit the manager's ability to manage conflicts but may also induce the worker to respond to a conflict by …