We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the right to allocate society's resources, and we allow for costly inter-group mobility. The winning group offers an allocation, that the opposition can either accept, or reject and...

We study the role of inter-group differences in the emergence of conflict. In our setting, society comprises two groups who compete in every period for political power, i.e. the right to allocate economic resources between the groups. Individuals can move from one group to another at a cost:...