We present a version of Baliga and Sjöström’s (2012a) conflict games with two asymmetric players. The players …

of bargaining, where offers are made, with claim stages, where one side can commit to impose surrender on the other …. Under uncertainty on the persistence of claims, long confrontations occur in the unique equilibrium of the game: war arises … both wrong. Bargaining proposals that are rejected initially might eventually be accepted after several periods of …

war because it changes the relative bargaining position between states. We find that shifts in military power are not the …In the context of international bargaining, standard models predict that a shift in military power can cause preventive … only cause of war under commitment problems and that commitment problems per se are not necessarily a cause of war even if …

We analyze a dynamic model of bargaining and war with rich sets of strategic options. There are two states located on a … over objects that influence future bargaining power. That is, it is valuable to have more territory, not only because it … brings higher utility, but also because it increases future bargaining power, as it can be used to generate military …

Envy is often the cause of mutually harmful outcomes. We experimentally study the impact of envy in a bargaining … setting in which there is no conflict in material interests: a proposer, holding the role of residual claimant, chooses the … harms the proposer. Notwithstanding, maximal claims by proposers are predominant for all game types. This generates conflict …

their relative size on the profitability of negotiated agreements. -- Bargaining ; Conflict ; Agency Problem … protocol or a conflict to appropriate the surplus. In the cooperative negotiations, disagreement corresponds to a pro rata … which conflict will be preferred to negotiated agreements (and vice versa), and we derive welfare implications. Finally, we …

experimental results suggest: In a simple bargaining game with an exogenous mediation proposal, the likelihood of conflict is … independent of the balance of power. If bargaining involves endogenous demand choices, however, the likelihood of conflict is …We study the role of an imbalance in fighting strengths when players bargain in the shadow of conflict. Our …

resource. If challenger rejects, conflict ensues. During conflict each player could be a tough type for whom fighting is … shadow of exogenously specified conflicts, the rejected offer determines how conflict is played if negotiations fail. In turn …, how players are expected to play during conflict determines their negotiating positions. In equilibrium, negotiations …

In this chapter, we review the recent literature on conflict and appropriation. Allowing for the possibility of … conflict, which amounts to recognizing the possibility that property rights are not perfectly and costlessly enforced … technologies of conflict. A central objective of this research is to identify the effects of conflict on economic outcomes: the …