War signals: a theory of trade, trust and conflict
We construct a theory of persistent civil conflicts, where persistence is driven by the endogenous dynamics of inter-ethnic trust and trade. In times of peace, agents belonging to two groups are randomly matched to trade bilaterally. Trade hinges on trust and cooperation. The onset of conflict signa...
| Main Authors: | , , |
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| Format: | Working paper |
| Published: |
University of Oxford
2010
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