On the escalation and de-escalation of conflict
Coauthor(s): Juan Lacomba, Francisco Lagos, Frans van Winden.
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We introduce three variations of the Hirshleifer-Skaperdas conflict game to study experimentally the effects of post-conflict behavior and repeated interaction on the allocation of effort between production and appropriation. Without repeated interaction, destruction of resources by defeated players can lead to lower appropriative efforts and higher overall efficiency. With repeated interaction, appropriative efforts are considerably reduced because some groups manage to avoid fighting altogether, often after substantial initial conflict. To attain peace, players must first engage in costly signaling by making themselves vulnerable and by forgoing the possibility to appropriate the resources of defeated opponents.
Lacomba, Juan, Francisco Lagos, Ernesto Reuben, and Frans van Winden. "On the escalation and de-escalation of conflict." Columbia University, July 2013.