Cooperation Breakdowns under Incomplete Property Rights
Jean Pierre TRANCHANT
In order to analyze conflict and cooperation between a State and a non ruling group in a general equilibrium, I unite pure rent-seeking models and economic models of conflict under an assumption of property rights incompleteness. I show that a unique and globally stable Nash equilibrium exists in this game. Cooperation breakdowns appear to be twofold: either a generalized conflict driven by a collapse of the State or a one-sided rebellion due to coexistence between a strong State and a weak minority. Natural resources raise the rebellion cost supported by the ruler inducing this one to be more benevolent.
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