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We study whether the Coase conjecture holds in a model of bargaining during conflict due to Powell and Fearon. Two players, A and B, contest a divisible resource. At any time during the conflict, they can make a binding agreement to share the resource. The conflict continues until they make an...
Persistent link: https://ebvufind01.dmz1.zbw.eu/10014480449
In many scenarios, a protagonist tries to compel a political leader (the antagonist) to cooperate. The protagonist can impose targeted measures (e.g., "smart" sanctions) that hurt the antagonist directly, and comprehensive measures (e.g., trade embargoes) aimed at provoking a popular uprising...
Persistent link: https://ebvufind01.dmz1.zbw.eu/10014480700
Recent analyses of wage bargaining has emphasized the distinction between insiders and outsiders, yet one typically assumes that insiders and recently hired outsiders are paid the same wage. We consider a model where the starting wage for outsiders may be lower than the insider wage, but...
Persistent link: https://ebvufind01.dmz1.zbw.eu/10010321755