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Peace in an unequal world? Experimental evidence on the relationship between inequality and conflict in a guns-vs-butter setting

Alexandra Baier, Sophia Seelos and Thomas Rittmannsberger

Games and Economic Behavior, 2024, vol. 147, issue C, 74-87

Abstract: This study addresses the emergence of (unarmed) peace and investments in arms within a guns-vs-butter conflict setting. We introduce a novel feature within the conflict game and separate the decision to start a conflict and the investment in arms, following the theoretical framework of Garfinkel and Syropoulos (2021). Based on this model we experimentally examine the emergence of peace while varying resource inequality among conflicting parties. We find that inequality leads to more conflicts and higher investments in arms. Despite these trends, achieving a state of unarmed peace is rarely observed in both treatments. Our results highlight the critical role of trust in attaining peaceful outcomes and show that armed peace, although not an optimal strategy in either treatment, is one of the most frequently chosen decisions.

Keywords: Conflict; Peace; Inequality; Guns-vs-butter; Contest; Laboratory experiment (search for similar items in EconPapers)
JEL-codes: C70 C72 C91 D74 D91 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:147:y:2024:i:c:p:74-87

DOI: 10.1016/j.geb.2024.06.006

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