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Chapter 2: War’s Inefficiency Puzzle

Chapter 2: War’s Inefficiency Puzzle

pp. 11-41

Authors

, University of Pittsburgh
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Extract

This chapter introduces the canonical crisis bargaining model. Two states negotiate over a zero-sum good. If they fail to reach an agreement, they fight a costly war. The key insight is that, due to those costs, a range of settlements mutually preferable to war always exists. Thus any good theory of war must first explain why states did not reach one of those negotiated settlements.

Keywords

  • war’s inefficiency puzzle
  • ultimatum game
  • bargaining range

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