Choice Under the Shadow of Conflict: An Experimental Investigation

29 Pages Posted: 20 May 2015

See all articles by Adam J. Hoffer

Adam J. Hoffer

University of Wisconsin - La Crosse

Date Written: May 18, 2015

Abstract

This study uses a controlled laboratory experiment to analyze the effects of conflict on economic growth and development. Participants were given control of a small, virtual civilization and provided incentives to develop their civilization under various conflict scenarios. The findings suggest that conflict has a negative effect on economic growth (30.40 percent less wealth creation in treatment group). The shadow of conflict is enough to strongly distort resource allocation (36.6 percent less economic investment by participants under the shadow of conflict), causing less economic growth under the shadow of conflict (30.51 percent less wealth accumulation by participants under the shadow of conflict).

Keywords: shadow of conflict, conflict experiment, laboratory experiment

JEL Classification: D74, C91, D13

Suggested Citation

Hoffer, Adam J., Choice Under the Shadow of Conflict: An Experimental Investigation (May 18, 2015). Available at SSRN: https://ssrn.com/abstract=2607687 or http://dx.doi.org/10.2139/ssrn.2607687

Adam J. Hoffer (Contact Author)

University of Wisconsin - La Crosse ( email )

1725 State Street
La Crosse, WI 54601
United States

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