The stability of anarchy and breakdown of production
Journal article, Peer reviewed
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Original versionHausken, K. (2006) The stability of anarchy and breakdown of production. Defence and Peace Economics, 17(6), pp. 589-603 10.1080/10242690601025492
In Hirshleifer’s (1995) model for unitary actors, combined fighting/production abruptly breaks down when inter-group decisiveness of fighting is above a certain value (above one) or income requirements are not met. Accounting for the collective action problem, this article gives the opposite result that fighting/production is stable also for large decisiveness parameters (above one) and strict income requirements for each agent. The stable fighting/production equilibrium gets gradually easier to perturb off balance for high inter-group decisiveness, high costs of fighting, different fighting efficiencies, and equal group sizes. The equilibrium number of groups that can be sustained decreases in the inter-group decisiveness and increases in the cost of fighting.
This is an electronic version of an article published in the Defence and Peace Economics© 2006 Copyright Taylor & Francis; Defence and Peace Economics is available online at www.tandfonline.com. http://www.tandfonline.com/doi/full/10.1080/10242690601025492