Rohner, Dominic; Thoenig, Mathias; Zilibotti, Fabrizio - Oxford Centre for the Analysis of Resource-Rich … - 2011
beliefs on the average propensity to trade of the other group. Since conict disrupts trade, the onset of a conflict signals … each conflict episode. Third, "accidental" conflicts that do not reect economic fundamentals can lead to a permanent … breakdown of trust, plunging a society into a vicious cycle of recurrent conflicts (a war trap). The incidence of conflict can …