We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the …, that the opposition can either accept, or reject and wage conflict. Expropriating a large share of resources increases … of conflict. In equilibrium, allocations are non-monotonic in the cost of mobility. Moreover, limited commitment with …

conflict and more intense fighting. …

-contractible up-front investments to improve their bargaining position and gain advantage for possible future conflict. Bargaining is … efficient ex post, but we show that a player may prefer Conflict ex ante if there are sufficient asymmetries in strength. There … are two sources of this finding. First, up-front investments are more dissimilar between players under Conflict, and they …

I show how changes in competition affect the power of reputation to induce sellers to exert effort. The impact of …. To guide the empirical analysis, I develop a model of reputation where the relative number of hosts and guests affects … the value of building a reputation through effort. In this framework, more competition depresses hosts' profits and leads …