Download This PaperThe Alliance Formation Puzzle and Capacity Constraints
WZB Markets and Politics Working Paper No. SP II 2008-07
9 Pages Posted: 26 Aug 2010
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The Alliance Formation Puzzle and Capacity Constraints
The Alliance Formation Puzzle and Capacity Constraints
Date Written: February 1, 2008
Abstract
The formation of an alliance in conflict situations is known to suffer from a collective action problem and from the potential of internal conflict. We show that budget constraints of an intermediate size can overcome this strong disadvantage and explain the formation of alliances.
Suggested Citation: Suggested Citation
Kai A. Konrad (Contact Author)
Max Planck Institute for Tax Law and Public Finance ( email )
Marstallplatz 1
Munich, 80539
Germany
HOME PAGE: http://www.tax.mpg.de/en/pub/home.cfm
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, 81679
Germany
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, 53072
Germany
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
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