Living in the Jungle or Together and in Peace?
44 Pages Posted: 8 Aug 2008
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: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Tax Competition and Trade Protection
By Eckhard Janeba and John D. Wilson
-
Public Goods in Trade: on the Formation of Markets and Political Jurisdictions
-
Endogenous Comparative Advantage, Government, and the Pattern of Trade
By Richard Clarida and Robert Findlay
-
International Conflict, Defense Spending and the Size of Countries
-
The Politics of EU Eastern Enlargement: Evidence from a Heckman Selection Model
By Thomas Pluemper, Christina J. Schneider, ...