We examine the determinants of cooperation and the effectiveness of deterrence when fear is a motive for conflict.We contrast results obtained in a complete information setting with those obtained in a setting with strategic risk, where players have different information about their environment....

This paper develops a positive model of informal contracting in which rewards and punishments are not determined by an ex ante optimal plan but instead express the ex post moral sentiments of the arbitrating party. We consider a subjective performance evaluation problem in which a principal can...

We examine the mechanics of deterrence and intervention when fear is a motive for conflict. We contrast results obtained in a complete information setting, where coordination is easy, to those obtained in a setting with strategic risk, where players have different assessments of their...