Bargaining versus Fighting

Peer-reviewed Journal Article

Skaperdas, Stergios (2006) Bargaining versus Fighting, Defence and Peace Economics 17(6): 657–676.

I examine the determinants of conflict and settlement by embedding probabilistic contests in a bargaining framework. Different costly enforcement efforts (e.g., arming, litigation expenditures) induce different disagreement points and Pareto frontiers. After examining the incentives for settlement, I demonstrate how different division rules and bargaining norms have real, economic effects. I then analyze some sources of conflict. I emphasize long-term, strategic considerations by examining an illustrative model and discussing particular historical examples.


Stergios Skaperdas

Stergios Skaperdas

Professor of Economics, UC Irvine