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THE SLIPPERY SLOPE OF CONCESSION
Author(s) -
HIRSHLEIFER JACK,
BOLDRIN MICHELE,
LEVINE DAVID K
Publication year - 2009
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2008.00154.x
Subject(s) - economics , preference , slippery slope , positive economics , mathematical economics , microeconomics , neoclassical economics , philosophy , epistemology
We show that with common knowledge and a common rate of time preference, the potential loser can always avoid wasteful conflict through a time‐consistent series of small concessions. We examine how the failure of each of these assumptions may explain why conflicts arise. We also debate which actions may be helpful in such unfortunate circumstances.