Editorial BoardXML

Seoul Journal of Economics - Vol. 25 , No. 2
[Paper List] [Go to Volume List]

[ Article ]
Seoul Journal of Economics - Vol. 25, No. 2, pp. 223-232
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 30 May 2012
Received 13 Jul 2011 Revised 09 Feb 2012 Accepted 16 Feb 2012

A Reputational Model of Conflict: Why Die to Win?
Jihong Lee
Associate Professor, Department of Economics, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 151-746, Korea, Tel: +82-2-880-6365, Fax: +82-2-886-4231 (jihonglee@snu.ac.kr)

Funding Information ▼

JEL Classification: C72, D72, D74

Abstract

This paper considers a simple model of zero-sum conflict between two players (e.g., territorial dispute) in which costly actions (e.g., terrorism) are available to one side. We identify how reputation effects shape the outcome of such conflict. A small prior of fanatic commitment type induces the possibility of costly attack followed by withdrawal in equilibrium. The chance of withdrawal is proportional to the self-inflicted cost of attack.

Keywords: Conflict, Terrorism, Reputation
Acknowledgments

The author is grateful to two anonymous referees for their helpful comments. This work was supported by the Je-Won Research Foundation Grant funded via the Institute of Economic Research at Seoul National University.

References
1. Atran, S. “The Moral Logic and Growth of Suicide Terrorism.” The Washington Quarterly 29 (No. 2 2006): 127-47.
2. Baliga, S., and Sjöström, T. “Arms Races and Negotiations.” Review of Economic Studies 71 (No. 2 2004): 351-69.
3. Downs, A. An Economic Theory of Democracy. New York: Harper Collins, 1957.
4. Jackson, M. O., and Morelli, M. “Political Bias and War.” American Economic Review 97 (No. 4 2007): 1353-73.
5. Key, V. O. The Responsible Electorate. Cambridge, MA: Belknap Press, 1966.
6. Kreps, D., Milgrom, P., Roberts, J., and Wilson, R. “Rational Cooperation in the Finitely Repeated Prisoners' Dilemma.” Journal of Economic Theory 27 (No. 2 1982): 245-52.
7. Kreps, D., and Wilson, R. “Reputation and Imperfect Information.” Journal of Economic Theory 27 (No. 2 1982): 253-79.
8. Lewis-Beck, M. S., Nadeau, R., and Elias, A. “Economics, Party, and the Vote: Causality Issues and Panel Data.” American Journal of Political Science 52 (No. 1 2008): 84-95.
9. Milgrom, P., and Roberts, J. “Predation, Reputation and Entry Deterrence.” Journal of Economic Theory 27 (No. 2 1982): 280-312.
10. Pape, R. A. Dying to Win. New York: Random House, 2005.
11. Schelling, T. C. The Strategy of Conflict. New York: Oxford University Press, 1963.
12. Schelling, T. C. Arms and Influence. New Haven: Yale University Press, 1966.
13. Woon, J. “Democratic Accountability and Retrospective Voting: A Laboratory Experiment.” American Journal of Political Science, Forthcoming.
 

Editorial Office, Seoul Journal of Economics, Institute of Economic Research, Seoul National University 599 Gwanangno, Gwanak-gu, Seoul 151-746, Korea
Tel: +82-2-880-5434 | Fax: +82-2-888-4454 | E-mail: sje@plaza.snu.ac.kr
Copyright (c) 2020 SJE. All rights reserved.