Peace in the Face of Uncertainty: Resource Allocation with Stochastic Armaments

Fuente: arXiv
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Main Author: Taylor, Sarah
Format: Preprint
Published: 2024
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author Taylor, Sarah
author_facet Taylor, Sarah
contents This paper examines a government's strategic resource allocation choices when facing an opposing group whose military power is uncertain. We investigate how this uncertainty affects the government's decision to divide resources in a way that either guarantees peace, despite unresolved uncertainty, or risks conflict. We find that under low uncertainty, the government prefers distributions which ensure peace, while under high uncertainty, they are willing to risk war. When uncertainty is low, the government's allocation is decreasing in uncertainty. When uncertainty is high it is increasing. The latter leads to an increased probability of fighting and falling total welfare.
format Preprint
id arxiv_https___arxiv_org_abs_2410_14362
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Peace in the Face of Uncertainty: Resource Allocation with Stochastic Armaments
Taylor, Sarah
Theoretical Economics
This paper examines a government's strategic resource allocation choices when facing an opposing group whose military power is uncertain. We investigate how this uncertainty affects the government's decision to divide resources in a way that either guarantees peace, despite unresolved uncertainty, or risks conflict. We find that under low uncertainty, the government prefers distributions which ensure peace, while under high uncertainty, they are willing to risk war. When uncertainty is low, the government's allocation is decreasing in uncertainty. When uncertainty is high it is increasing. The latter leads to an increased probability of fighting and falling total welfare.
title Peace in the Face of Uncertainty: Resource Allocation with Stochastic Armaments
topic Theoretical Economics
url https://arxiv.org/abs/2410.14362