Conflict economics

In traditional economics, appropriation is a non-violent process that is guaranteed by perfect property rights and their costless enforcement.

The player who wins the contest claims the entire resource, not leaving anything for the losing party.

Again, the probability of winning the contest and grabbing the other output depend on the relative numbers of guns produced.

One of the interesting outcomes is that if one agent has higher productivity, i.e. if he uses one unit of the resource he will gain more butter than his opponent would, he will receive a relatively lower expected pay-off.

Depending on the risk preferences of the agents, a simple division of the contested resource according to a settlement can be envisioned.

Introducing a discount rate for payoffs in the future might induce players to start conflict in the present.

Individuals and parties have been repeatedly proven to form alliances to achieve a common goal.

In the second stage (intra-group conflict) the successful group allocates the won resource among its members.