This paper aims at a better understanding of the conditions under which unequal rank or power positions may get permanently established through asymmetric gift exchange when a gift brings pride to the donor and shame to the recipient. Such a framework matches numerous observations reported in...

In establishing and consolidating strong centralized states absolute monarchs do not rely on sheer force alone but they also resort to the tactic of seduction whereby they buy the loyalty of potential rivals or dissenters. We argue with special reference to the lands of Islam that seduction is...

Earlier research has shown that the tragedy of the commons may be resolved by Folk theorems for dynamic games. In this article we graft on a standard natural-resource exploitation game the possibility to appropriate the resource through violent means. Because conflict emerges endogenously as...

The relationship between trade and foreign-policy goals has led to growing debates in the field of international economics and international relations. Most studies are cross-national and use interstate disputes to proxy the national security interests. We focus on the U.S., the world’s...

In this paper we show that in highly unequal societies, different societal groups may support a rent-seeking dicator serving their interests better than the median voter in a democratic regime. Importantly, it is the stakes of dictator in the economy, in the form of capital ownership, that...

Our paper explores the economic conditions that lead third parties to intervene in ongoing internal wars. We develop a formal model that ties together some of the main forces driving the decision to interfere in a civil war, including the economic benefits accruing from the intervention and the...

We propose a model where an autocrat rules over an ethnically divided society. The dictator selects the tax rate over domestic production and the nation's natural resources to maximize his rents under the threat of a regime-switching revolution. We show that a weak ruler may let the country...

In this paper we develop a model of patronage where the king's subjects exert a decentralized social sanction on the dissidents. We are able to show that depending on the succession rule in case of a revolution, the optimal co-optation strategy of the king differs. When the succeeding king is...