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Title:Battlefields and marketplaces PDF Logo
Authors:Mehlum, Halvor
Moene, Karl Ove
Issue Date:2002
Series/Report no.:Memorandum, Department of Economics, University of Oslo 2002,11
Abstract:Divided societies in the developing world experience wasteful struggles for power. We study the relationship between political stability and resources wasted in the struggle within a model of competitive power contests. The model of power contests is similar in structure to models describing oligopolistic market competition. This analogy helps us in deriving results that are new to the conflict literature. We show, for example, that the Herfindahl-Hirschman index can be interpreted as a measure of power concentration and that a peace treaty between ├×ghting groups have a parallel in tacit collusion between firms in a market.
Subjects:Violent conflicts
Rent-seeking games
Herfindahl-Hirschman index
Oligopolistic competition
JEL:C70
D23
D74
Document Type:Working Paper
Appears in Collections:Memorandum, Department of Economics, University of Oslo

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