Ponsatí, Clara; Sanchez-Pages, Santiago - In: SERIEs : Journal of the Spanish Economic Association 3 (2012) 1/2, pp. 157-179
We propose an elementary theory of wars fought by fully rational contenders that features three of the main rationalist explanations for armed conflicts: uncertainty, commitment, and indivisibility. Two parties play a Markov game that combines stages of bargaining, where offers are made, with...