2011
DOI: 10.1177/0738894210396629
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War with Outsiders Makes Peace Inside

Abstract: In many situations there is a potential for con ‡ict both within and between groups. Examples include wars and civil wars and distributional con ‡ict in multitiered organizations like federal states or big companies. This paper models such situations with a logistic technology of con ‡ict. If individuals decide simultaneously and independently about the amount of internal con ‡ict, external con ‡ict and production, there is typically either only internal con ‡ict, or only external con ‡ict -but not both. If ea… Show more

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Cited by 17 publications
(10 citation statements)
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References 43 publications
(67 reference statements)
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“…Most importantly, our paper is complementary to the work of Munshi and Rosenzweig (2016) on misallocation of labor and caste networks of mutual insurance; here, the misallocation is across occupations rather than space, and the mechanism is different: rent-seeking does not appear in Munshi and Rosenzweig (2016). Another literature considers conflict within and between groups, and our results effectively invert the logic found in Münster and Staal (2011), who find that groups have an incentive to fight with other groups to exhaust any desire to fight within-group; in our context, we find that an inability to “fight” with outsiders can intensify internal fighting, in the form of rent-seeking.…”
Section: Introductionsupporting
confidence: 80%
“…Most importantly, our paper is complementary to the work of Munshi and Rosenzweig (2016) on misallocation of labor and caste networks of mutual insurance; here, the misallocation is across occupations rather than space, and the mechanism is different: rent-seeking does not appear in Munshi and Rosenzweig (2016). Another literature considers conflict within and between groups, and our results effectively invert the logic found in Münster and Staal (2011), who find that groups have an incentive to fight with other groups to exhaust any desire to fight within-group; in our context, we find that an inability to “fight” with outsiders can intensify internal fighting, in the form of rent-seeking.…”
Section: Introductionsupporting
confidence: 80%
“…It is also possible that individual shares are defined by outcomes of an additional within-group conflict. Such nested or multi-level contests have also been studied [118,123,[127][128][129][130] with a general conclusion that external conflicts cause increasing within-group cooperation and reduced free-riding.…”
Section: (I) Homogeneous Groupsmentioning
confidence: 99%
“…Yet, once one allows 3 to also join coalitions, it becomes clear that for the same reason only the grand coalition is subgame perfect. Still, as modeled by Münster and Staal (2011), when there is also an internal contest within coalitions, using endowments for external competition may actually lead to more production, as fewer resources are then left for harmful within-coalition competition.…”
Section: Rescuing the Initial Intuitionmentioning
confidence: 99%