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1、SocialConflictandthePoliticalEconomyofThird-PartyInterventionby†‡Yang-MingChangandZijunLuoJuly26,2011†DepartmentofEconomics,KansasStateUniversity,319WatersHall,Manhattan,KS66506-4001,Tel:(785)532-4573,Fax:(785)532-6919,e-mail:ymchang@ksu.edu‡DepartmentofEconomics,KansasStateUniversi
2、ty,327WatersHall,Manhattan,KS66506-4001,Tel:(785)532-7357,Fax:(785)532-6919,e-mail:luozijun@ksu.edu1SocialConflictandthePoliticalEconomyofThird-PartyInterventionAbstractThispaperanalyzeshowtheequilibriumoutcomeofsocialconflictbetweenfactions,orinterestgroups,isstrategicallyalteredby
3、third-partyintervention.Weconsideraninterveningthirdpartythatcommitsfinancialsupporttooneoftwofactionsforreducingitscostinconflict.Withintheframeworkofthree-playersequential-movegames,weinvestigatethequestionsasfollows.Whatistheoptimalinterventionintensityintermsofthethirdparty’sfin
4、ancialsupport?Isthereafirst-moveradvantageinthepresenceofthird-partyintervention?Fightingagainstallodds,willtheunsupportedfactionhaveachancetoprevailwhenitsopponentreceivesthirdpartysupport?Whatistheoptimaltimingofthird-partyintervention?Issocialcostofconflicthigherwithinterventiont
5、hanwithoutit?Theanalysisinthepaperhasimplicationsfortheconditionsunderwhichthestrategicinterventionofathirdpartymayormaynotbreakaconflictbetweenfactions.Keywords:Socialconflict;Third-partyintervention;PoliticaleconomyJELcodes:D74;H5621.IntroductionForbetterorforworse,third-partyinte
6、rventionsaretypicalresponsestopersistentsocialconflicts.Despitethattheirformsandcontextsmaydifferconsiderably,interventionsbythirdpartiescommonlytakeplaceinsuchnon-violentconflictsassiblingrivalryforparentalwealth(Buchanan,1983;ChangandWeisman,2005),labordisputesbetweenunionsandmana
7、gement(Hillman,Katz,andRosenberg,1987),statecompetitionforpublicgoods(SiqueiraandSandler,2004),tradedisputesbetweenmembercountriesoftheWorldTradeOrganization(BuschandReinhardt,2006),litigationbyinterestedpartiesoverpropertyrights(RobsonandSkaperdas,2008),andwaterdisputesacrossjurisd
8、ictionalboundaries(
