Commitment Problems in Conflict Resolution
51 Pages Posted: 16 Apr 2013 Last revised: 8 May 2015
Date Written: January 19, 2015
Commitment problems are inherent to non-binding conflict resolution mechanisms, since an unsatisfied party can ignore the resolution and initiate conflict. We provide experimental evidence suggesting that even in the absence of binding contractual agreements individuals often avoid conflict by committing to the outcome of a conflict resolution mechanism. Commitment problems are mitigated to a greater extent for groups that opt-in to the conflict resolution mechanism, but only when opting-in is costly. Although conflict rates are higher when opting-in is costly than when it is free or exogenously imposed, commitment problems are greatly reduced amongst those groups who choose to opt-in.
Keywords: conflict resolution, commitment problem, opting-in, contests, experiments
JEL Classification: C72, C91, D72
Suggested Citation: Suggested Citation