On the social efficiency of conflict |
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| Institution: | 1. Department of Economics, University of Bologna, Strada Maggiore 45, 40125 Bologna, Italy;2. GERAD, HEC Montréal, 3000, chemin de la Côte-Sainte-Catherine Montréal, Québec, Canada H3T 2A7;1. EPEE, University of Evry Val d’Essonne, France;2. LEM, University of Lille 3, France |
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| Abstract: | In sharp contrast with the economic literature on conflict, this paper shows that confrontation may be efficiency enhancing. Conditions are derived under which a contest over the exclusive control of a resource Pareto dominates peaceful access. |
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