Baliga, Sandeep; Sjöström, Tomas - 2023
We study whether the Coase conjecture holds in a model of bargaining during conflict due to Powell and Fearon. Two … players, A and B, contest a divisible resource. At any time during the conflict, they can make a binding agreement to share … the resource. The conflict continues until they make an agreement or one side collapses. Player B privately knows w hether …