Living in the Jungle or Together and in Peace?

44 Pages Posted: 8 Aug 2008

See all articles by Dario Maimone Ansaldo Patti

Dario Maimone Ansaldo Patti

University of Essex; University of Messina

Giuseppe Sobbrio

University of Messina - Institute of Economics and Finance

Date Written: August 6, 2008

Abstract

The existing literature on conflicts extensively argues that countries may find a peaceful settlement, in which they renounce fighting. In this paper we try to formalize a model, in which countries focus on a different and more attractive solution for their disputes. More specifically, we the case in which they merge, creating a new entity, instead of simply renouncing fighting. We stress the welfare implications of this choice, as well as the fact that the merging process is not necessarily unchangeable, but it can collapse depending on the parameters of the model. Beyond the literature on conflicts, this paper can also be linked to the one on countries secession/unification.

Keywords: Merger, Conflict, Bargaining

JEL Classification: C7, D74

Suggested Citation

Maimone Ansaldo Patti, Dario and Maimone Ansaldo Patti, Dario and Sobbrio, Giuseppe, Living in the Jungle or Together and in Peace? (August 6, 2008). Available at SSRN: https://ssrn.com/abstract=1209582 or http://dx.doi.org/10.2139/ssrn.1209582

Dario Maimone Ansaldo Patti (Contact Author)

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

University of Messina

Piazza Pugliatti, 1
Messina, Messina 981223
Italy
+39090719202 (Phone)
+39090719202 (Fax)

Giuseppe Sobbrio

University of Messina - Institute of Economics and Finance ( email )

Piazza Pugliatti 1
Messina
Sicilia, 98122
Italy