We study the possibility of peace when two countries fight a war over the ownership of a resource. War is always the outcome of the game played by rational countries - under complete or asymmetric information - when there is no pre-established distribution of the resource among countries. When...

We present a model of rational and fully informed players. We show that in absence of binding agreements, in many cases, war can be avoided by transferring resources from one player into another. In most cases the rich country transfers money to the poor country. But when the military...

We study the possibility of peace when two countries fight a war over the ownership of a resource. War is always the outcome of the game played by rational countries – under complete or asymmetric information – when there is no pre-established distribution of the resource among countries....