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- W2112066207 abstract "Conflict and competition often impose costs on both winners and losers, and conflicting parties may prefer to resolve the dispute before it occurs. The equilibrium of a conflict game with side-payments predicts that with binding offers, proposers make and responders accept side-payments, generating settlements that strongly favor proposers. When side-payments are non-binding, proposers offer nothing and conflicts always arise. Laboratory experiments confirm that binding side-payments reduce conflicts. However, 30% of responders reject binding offers, and offers are more egalitarian than predicted. Surprisingly, non-binding side-payments also improve efficiency, although less than binding. With binding side-payments, 87% of efficiency gains come from avoided conflicts. However, with non-binding side-payments, only 39% of gains come from avoided conflicts and 61% from reduced conflict expenditures." @default.
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- W2112066207 date "2012-01-01" @default.
- W2112066207 modified "2023-09-28" @default.
- W2112066207 title "Side-Payments and the Costs of Conflict" @default.
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- W2112066207 doi "https://doi.org/10.2139/ssrn.1999090" @default.
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