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Rationality as a Barrier to Peace: Micro-Evidence from Kosovo by Sumon K. Bhaumik, Ira N. Gang, Myeong-Su Yun (March 2007) published in: Comparative Economic Studies, 51(2): 242-264, 2009 Abstract: Despite a significant expansion of the literature on conflicts and fragility of states, only a few systematic attempts have been made to link the theoretical literature on social conflicts to the available micro-level information about the people who are involved in these conflicts. We address this lacuna in the literature using a household-level data set from Kosovo. Our analysis suggests that it is individually rational for competing ethnic communities, Kosovo Albanians and Kosovo Serbs, to resist a quick agreement on a social contract to share the region’s resources. Text: See Discussion Paper No. 2682 
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