War and conflict in economics: Theories, applications, and recent trends

Abstract

We review the main economic models of war and conflict. These models vary in details, but their implications are qualitatively consistent, highlighting key commonalities across a variety of conflict settings. Recent empirical literature, employing both laboratory and field data, in many cases confirms the basic implications of conflict theory. However, this literature also presents important challenges to the way economists traditionally model conflict. We finish our review by suggesting ways to address these challenges.JEL classifications: D72, D74, F51, F52, F54, H56, N4, Q34

Experimental Research on Contests

“…Given the space constraints, this review did not cover the issues of contest design, incomplete information, endogenous entry, risk, sabotage, alliances, demographic differences, etc. The reader interested in these and other issues examined by experimental research on contests should consult the surveys of Sheremeta (2013Sheremeta ( , 2015Sheremeta ( , 2016Sheremeta ( , and 2018, Chowdhury and Gürtler (2015), Dechenaux et al (2015), and Kimbrough et al (2018).…”

“…First of all, there is a problem of measurement error, since the researcher can only observe the performance of contestants, which is a function of effort, ability and luck (Ericsson and Charness, 1994). In addition, there is a problem of self-selection and endogeneity (Kimbrough et al, 2018). To circumvent these issues, researchers often use controlled laboratory experiments to study behavior in contests (see the review by Dechenaux et al, 2015).…”

Unraveling the role of oxytocin in the motivational structure of conflict

“…Although conflict is a subject of study in all fields of the social sciences, the definition of conflict is not the same across disciplines. Economists, for example, define conflict as a situation in which competitors choose costly inputs in pursuit of private payoffs framed as wins and losses (Garfinkel & Skaperdas 2007;Kimbrough et al 2019). Evolutionary biologists define conflict in terms of Darwinian fitness (Darwin 1859), where at least one of the species negatively affects the others' fitness (Rusch & Gavrilets 2019).…”

Resolving attacker-defender conflicts through intergroup negotiation

“…Although conflict is a subject of study in all fields of the social sciences, the definition of conflict is not the same across disciplines. Economists, for example, define conflict as a situation in which competitors choose costly inputs in pursuit of private payoffs framed as wins and losses (Garfinkel & Skaperdas 2007;Kimbrough et al 2019). Evolutionary biologists define conflict in terms of Darwinian fitness (Darwin 1859), where at least one of the species negatively affects the others' fitness (Rusch & Gavrilets 2019).…”