We propose that fully informed rivals' ability to bargain on the terms of an alternative status quo can lead to the failure of asymmetric deterrence. The model we develop to support this claim allows repeated rounds of bargaining, crisis, and war until one of the rivals agrees to the other...

I investigate the rationality of challenge and escalation when a third party, allied either to defender or challenger, is uncertain about the enemy’s power. The analysis illustrates how third-party ally power impacts general and immediate deterrence and willingness to intervene. In...