This report uses a generic two-stage escalation model to ask whether and when limited conflicts can occur. There are two players in the model: Challenger and Defender. Challenger can either initiate a conflict or not. If Challenger initiates, Defender can concede, respond-in-kind, or escalate....

A generic asymmetric two-stage escalation model of incomplete information is used to examine strategic relationships in which one player adopts a defense posture akin to the “Massive Retaliation†policy of the Eisenhower administration that relies only on the threat of escalation to...