- Consulting Editors
- The Oxford Handbook of The Economics of Peace and Conflict
- Economic Perspectives on Peaceand Conflict
- Informational Aspects of Conflict
- Commitment Problems and Shifting Poweras a Cause of Conflict
- Bargaining and Conflict with Incomplete Information
- The Hobbesian Trap
- Religion, Conflict, and Cooperation
- Comparing Polarization Measures
- Inequality, Polarization, and Conflict
- On the Causes of Civil War
- Reflections on Africa’s Wars
- Methods For Measuring Aggregate Costs Of Conflict
- How Many Bucks in a Bang: On the Estimation of the Economic Costs of Conflict
- Estimating the Costs of War: Methodological Issues, with Applications to Iraq and Afghanistan
- Estimating the Human Costs of War: The Sample Survey Approach
- Mental Health In The Aftermath Of Conflict
- Measuring the Economic Costs of Terrorism
- Assessing the Effects of Military Expenditures on Growth
- The Economic Welfare Cost of Conflict: An Empirical Assessment
- Technologies of Conflict
- Endogenous Formation of Alliances in Conflicts
- Conflicts with Multiple Battlefields
- Laboratory Experiments on Conflict
- War, Trade, and Natural Resources: A Historical Perspective
- Trade in the Shadow of Power
- Conflict and Policy in General Equilibrium: Insights from a Standard Trade Model
- The Use of Coercion in Society: Insecure Property Rights, Conflict, and Economic Backwardness
- War and Poverty
- Aggressive Elites and Vulnerable Entrepreneurs: Trust and Cooperation in the Shadow of Conflict
- Globalization and International Conflict: Can Foreign Direct Investment Increase Cooperation Among Nations?
- National Borders, Conflict and Peace
- Political Institutions and War Initiation: The Democratic Peace Hypothesis Revisited
- Why Follow the Leader? Collective Action, Credible Commitment, and Conflict
- Conflict-Inhibiting Norms
Abstract and Keywords
This article considers the strategic transmission of information, though in a variety of ways, including not only costly signaling through actions to convey information, but also engaging in limited war as a means to learn about the opponent's strength. It provides a useful review of the mechanism design approach to the problem. The article implies that conflict and inefficiencies are to be expected whenever parties have optimistic prospects on the outcome of the all-out conflict. It also examines the recent literature that has challenged this view. These new contributions consider the existence of limited confrontations that allow bargaining to resume. In the presence of private information on the balance of strengths, that means that conflict can convey information and potentially become a bargaining instrument.
Santiago Sanchez-Pages is a senior lecturer at the School of Economics of the University of Edinburgh and a research fellow at the University of Barcelona.
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