How Alliances Form and Conflict Ensues
Lu Dong (),
Jaimie W Lien () and
Jie Zheng ()
Additional contact information
Lu Dong: Nanjing Audit University
Jaimie W Lien: Chinese University of Hong Kong
Jie Zheng: Tsinghua University
No 2021-04, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham
In a social network in which friendly and rival bilateral links can be formed, how do alliances between decision-makers form, and what determines whether a conflict will arise? We study a network formation game between ex-ante symmetric players in the laboratory to examine the dynamics of alliance formation and conflict evolution. A peaceful equilibrium yields the greatest social welfare, while a successful bullying attack transfers the victimized playerâ€™s resources evenly to the attackers at a cost. Consistently with the theoretical model predictions, peaceful and bullying outcomes are prevalent among the randomly re-matched experimental groups, based on the cost of attack. We further examine the dynamics leading to the final network and find that groups tend to coordinate quickly on a first target for attack, while the first attacker entails a non-negligible risk of successful counter-attack by initiating the coordination. These findings provide insights for understanding social dynamics in group coordination.
Keywords: network formation; conflict; alliance; bully; peace (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.nottingham.ac.uk/cedex/documents/paper ... on-paper-2021-04.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:not:notcdx:2021-04
Access Statistics for this paper
More papers in Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Jose V Guinot Saporta ().