 See also Prisoner's dilemma The Melian Dialogue References Rationalist Explanations for War, by James Fearon War as a Commitment Problem, by Robert Powell  Hegel Quotes
Endogenous Destruction In a series of two papers, Chang and Luo (2013, 2016) provide a possible explanation to the Puzzle. They show that the key to the puzzle lies in destruction. In the absence of destruction, or when destruction is constant or proportionate to remaining resources after war, war is more costly than peace as Fearon has assumed. However, when destruction is endogenous and increases with weapon allocation, the authors show that the two conflicting states allocate more weapons under settlement/negotiation. When destruction is small, it is shown that the expected utility from war is higher than peace. See also Prisoner's dilemma The Melian Dialogue References Rationalist Explanations for War, by James Fearon War as a Commitment Problem, by Robert Powell War or Settlement: An Economic Analysis of Conflict with Endogenous and Increasing Destruction, by Yang-Ming Chang and Zijun Luo Endogenous Destruction in Conflict: Theory and Extensions, by Yang-Ming Chang and Zijun Luo Hegel Quotes
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Endogenous Destruction In a series of two papers, Chang and Luo (2013, 2016) provide a possible explanation to the Puzzle. They show that the key to the puzzle lies in destruction. In the absence of destruction, or when destruction is constant or proportionate to remaining resources after war, war is more costly than peace as Fearon has assumed. However, when destruction is endogenous and increases with weapon allocation, the authors show that the two conflicting states allocate more weapons under settlement/negotiation. When destruction is small, it is shown that the expected utility from war is higher than peace.
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War or Settlement: An Economic Analysis of Conflict with Endogenous and Increasing Destruction, by Yang-Ming Chang and Zijun Luo Endogenous Destruction in Conflict: Theory and Extensions, by Yang-Ming Chang and Zijun Luo