Cycles of Conflict: An Economic Model

We propose a model of cycles of conflict and distrust. Overlapping generations of agents from two groups sequentially play coordination games under incomplete information about whether the other side consists of bad types who always take bad actions. Good actions may be misperceived as bad and infor...

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Main Authors: Acemoglu, Daron, Wolitzky, Alexander Greenberg
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2015
Online Access:http://hdl.handle.net/1721.1/96000
https://orcid.org/0000-0003-0908-7491
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author Acemoglu, Daron
Wolitzky, Alexander Greenberg
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Acemoglu, Daron
Wolitzky, Alexander Greenberg
author_sort Acemoglu, Daron
collection MIT
description We propose a model of cycles of conflict and distrust. Overlapping generations of agents from two groups sequentially play coordination games under incomplete information about whether the other side consists of bad types who always take bad actions. Good actions may be misperceived as bad and information about past actions is limited. Conflict spirals start as a result of misperceptions but also contain the seeds of their own dissolution: Bayesian agents eventually conclude that the spiral likely started by mistake, and is thus uninformative of the opposing group's type. The agents then experiment with a good action, restarting the cycle.
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spelling mit-1721.1/960002022-09-30T12:58:21Z Cycles of Conflict: An Economic Model Acemoglu, Daron Wolitzky, Alexander Greenberg Massachusetts Institute of Technology. Department of Economics Acemoglu, Daron We propose a model of cycles of conflict and distrust. Overlapping generations of agents from two groups sequentially play coordination games under incomplete information about whether the other side consists of bad types who always take bad actions. Good actions may be misperceived as bad and information about past actions is limited. Conflict spirals start as a result of misperceptions but also contain the seeds of their own dissolution: Bayesian agents eventually conclude that the spiral likely started by mistake, and is thus uninformative of the opposing group's type. The agents then experiment with a good action, restarting the cycle. 2015-03-12T20:15:01Z 2015-03-12T20:15:01Z 2014-04 Article http://purl.org/eprint/type/JournalArticle 0002-8282 http://hdl.handle.net/1721.1/96000 Acemoglu, Daron, and Alexander Wolitzky. “ Cycles of Conflict: An Economic Model.” American Economic Review 104, no. 4 (April 2014): 1350–1367. https://orcid.org/0000-0003-0908-7491 en_US http://dx.doi.org/10.1257/aer.104.4.1350 American Economic Review Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association
spellingShingle Acemoglu, Daron
Wolitzky, Alexander Greenberg
Cycles of Conflict: An Economic Model
title Cycles of Conflict: An Economic Model
title_full Cycles of Conflict: An Economic Model
title_fullStr Cycles of Conflict: An Economic Model
title_full_unstemmed Cycles of Conflict: An Economic Model
title_short Cycles of Conflict: An Economic Model
title_sort cycles of conflict an economic model
url http://hdl.handle.net/1721.1/96000
https://orcid.org/0000-0003-0908-7491
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