Contests over Political Authority

author(s): 
Catherine Hafer
2007

This paper analyzes a model of endogenous political authority in which authority may be established by force through a standoff. Two players have a mix of common and contrary interests; the resolution of the dispute is required to be self-sustaining, i.e. there is no external enforcement of agreements; and the players are uncertain about each other’s resolve, i.e., about the relative strength of their interests in one outcome over another. An equilibrium solution of the model provides insights into the duration of the contest over authority, its ultimate outcome, and the conditions under which a peaceful resolution is possible. I show that neither cheap talk nor impartial mediation promote peaceful resolutions or enhance efficiency. Costly signaling reduces the incidence of conflict but may consume more resources than the conflict it obviates.

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