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Problems of Commitment in Arming and War: How Insecurity and Destruction Matter

Author

Listed:
  • Garfinkel, Michelle

    (University of California-Irvine)

  • Syropoulos, Constantinos

    (Drexel University)

Abstract
This paper analyzes a guns-versus-butter model in which two agents compete for control over an insecure portion of their combined output. They can resolve this dispute either peacefully through settlement or by military force through open conflict (war). Both types of conflict resolution depend on the agents' arming choices, but only war is destructive. We find that, insofar as entering into binding contracts on arms is not possible and agents must arm even under settlement to secure a bigger share of the contested output, the absence of long-term commitments need not be essential in understanding the outbreak of destructive war. Instead, the ability to make short-term commitments could induce war. More generally, our analysis highlights how the pattern of war's destructive effects, the degree of output insecurity and the initial distribution of resources matter for arming decisions and the choice between peace and war. We also explore the implications of transfers for peace.

Suggested Citation

  • Garfinkel, Michelle & Syropoulos, Constantinos, 2018. "Problems of Commitment in Arming and War: How Insecurity and Destruction Matter," School of Economics Working Paper Series 2018-8, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2018_008
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    References listed on IDEAS

    as
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    11. Matthew O. Jackson & Massimo Morelli, 2007. "Political Bias and War," American Economic Review, American Economic Association, vol. 97(4), pages 1353-1373, September.
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    13. Yang-Ming Chang & Zijun Luo, 2017. "Endogenous Destruction In Conflict: Theory And Extensions," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 479-500, January.
    14. Garfinkel Michelle R. & Syropoulos Constantinos, 2018. "Rules for Dividing a Disputed Resource in the Context of the Classical Liberal Argument for Peace," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 24(1), pages 1-16, February.
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    Cited by:

    1. Schaller, Zachary & Skaperdas, Stergios, 2020. "Bargaining and conflict with up-front investments: How power asymmetries matter," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 212-225.
    2. Garfinkel, Michelle R. & Syropoulos, Constantinos, 2021. "Self-enforcing peace agreements that preserve the status quo," Games and Economic Behavior, Elsevier, vol. 130(C), pages 148-178.
    3. Kyung nok Chun & Zachary Schaller & Stergios Skaperdas, 2020. "Why Are There Strikes?," Revue d'économie politique, Dalloz, vol. 130(6), pages 929-956.
    4. Michelle R. Garfinkel & Constantinos Syropoulos, 2019. "On Trade and the Stability of (Armed) Peace," Working Papers 181910, University of California-Irvine, Department of Economics.
    5. Michelle R. Garfinkel & Constantinos Syropoulos, 2022. "International Trade and Stable Resolutions of Resource Disputes," CESifo Working Paper Series 10040, CESifo.
    6. Todd Sandler, 2019. "Affinity, arming, consequences, and perceptions: an introduction," Public Choice, Springer, vol. 178(3), pages 319-327, March.
    7. Parashari, Gopal Sharan & Kumar, Vimal, 2020. "Destruction and settlement norms as determinants of conflict: An evolutionary perspective," European Journal of Political Economy, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    ontested property rights; settlement mechanisms; destructive conflict; negotiation; armed peace;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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