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...

Recent studies emphasize the occurrence of conflict as a rational economic activity as well as production and exchange. Agents are assumed to divide their efforts into fighting and productive activities, or as commonly denoted in 'guns' and 'butter'. This paper does try to go beyond this...

The recent proliferation of studies on terrorism has brought scholars from different fields and approaches to converge on this phenomenon. As a result, economists, social and political scientists have developed theories, evidence and, in a sense, even a peculiar jargon of their own. Starting...