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Conflict and the Social Contract *
Author(s) -
Bester Helmut,
Wärneryd Karl
Publication year - 2006
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2006.00452.x
Subject(s) - social contract , international conflict , economics , social conflict , power (physics) , distribution (mathematics) , microeconomics , conflict resolution research , political science , conflict resolution , law , mathematical analysis , physics , mathematics , quantum mechanics , politics
Abstract We consider social contracts for resolving conflicts between two agents who are uncertain about each other's fighting potential. Applications include international conflict, litigation and elections. Even though only a peaceful agreement avoids a loss of resources, if this loss is small enough, then any contract must assign a positive probability of conflict. We show how the likelihood of conflict outbreak depends on the distribution of power between the agents and their information about each other.