This paper considers a partial equilibrium model of conflict where two asymmetric, rational and risk-neutral opponents evaluate differently a contested stake. Differently from common contest models, agents have the option of choosing a second instrument to affect the outcome of the conflict. The...

This paper considers a partial equilibrium model of conflict where two rational and risk-neutral opponents conflict in order to appropriate a positive fraction of a stake. This paper is intended to extend the literature on conflict dealing with two main points: (1) the incentives to settle...