This article applies microeconomic theory to illustrate the plausibility of a relationship between international trade and conflict. It is argued that the mutual dependence established between two trading partners (dyads) is sufficient to raise the costs of conflict, there-by diminishing levels...

This article investigates the relationship between interdependence and conflict, using U.S.-Warsaw Pact trade and conflict data during détente as a case study. A theoretical framework is developed in which incentives to reduce conflict are related to the desire to protect the benefits of an...