Passing Your Gun to Your Enemy- Madness or Rationality? Rational Transfers in a Network of Contests
Transferring conflict-resources to an enemy is clearly irrational in a two- agent contest. But it might be possible (in equilibrium) in a network of contests. This paper proves that ex-ante conflict resource transfers to a direct opponent can happen in equilibrium, when there is a network of contests. The paper also proves the possibility of a portion of the transferred conflict resource getting employed against the transferer in equilibrium