TY - RPRT AU - Lacomba, Juan A. AU - Lagos, Francisco Miguel AU - Reuben, Ernesto AU - Winden, Frans van TI - On the Escalation and De-Escalation of Conflict PY - 2013/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7492 UR - https://www.iza.org/index.php/publications/dp7492 AB - We introduce three variations of the Hirshleifer-Skaperdas conflict game to study experimentally the effects of post-conflict behavior and repeated interaction on the allocation of effort between production and appropriation. Without repeated interaction, destruction of resources by defeated players can lead to lower appropriative efforts and higher overall efficiency. With repeated interaction, appropriative efforts are considerably reduced because some groups manage to avoid fighting altogether, often after substantial initial conflict. To attain peace, players must first engage in costly signaling by making themselves vulnerable and by forgoing the possibility to appropriate the resources of defeated opponents. KW - contests KW - appropriation KW - conflict KW - tournaments KW - rent-seeking KW - peace KW - escalation ER -