University of Oslo

Faulty Fighting: Misinterpretations of the gains from conflict

Author(s)

Tarjei Havnes

Date of publication

Oct 8, 2007

Abstract

This paper considers how rational groups may come to misperceive the gains from conflict. It is shown how experiences of public policies may differ from actual policies, and at the extreme may lead to revolts on false premises. The aim is to give a first idea of how misperceptions and overambitions are formed, and how rational groups may act upon them. Bayesian updating is employed to form group perceptions. Increasing transparency may not solve the problem in the short run.
The framework is applied to show how misperceptions may increase the likelihood of conflict particularly in poor countries with low levels of education. Intragroup inequality in wages or education is shown to increase the probability of revolt.

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