Violent conflict destroy resources. It generates "destruction costs." These costs have an important effect on individual's decisions to cooperate or conflict. We develop two models of conflict: one in which conflict's destruction costs are independent of individuals' investment in "arms" - the...

Violent conflict destroys resources. It generates “destruction costs.” These costs have an important effect on individuals' decisions to cooperate or conflict. We develop two models of conflict: one in which conflict's destruction costs are independent of individuals' investments in...

This paper provides new evidence showing that carbon transition risk is becoming increasingly material and is priced both in equity and debt markets. We find that there is a widespread price-earnings discount linked to corporate carbon emissions. This discount varies, however, by sector and...

Conflict and competition often impose costs on both winners and losers, and conflicting parties may prefer to resolve the dispute before it occurs. The equilibrium of a conflict game with side-payments predicts that with binding offers, proposers make and responders accept side-payments,...