Acemoglu, Daron; Golosov, Mikhail; Tsyvinski, Aleh; … - 2011
. We show that a key parameter determining the incentives for war is the elasticity of demand. Our first result identifies … military action. In the case of inelastic resource demand, war incentives increase over time and war may become inevitable. Our … demand). Our third result is that limited commitment implies that regulation of prices and quantities might actually …
