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Title: The Alliance Formation Puzzle and Capacity Constraints

Author(s): Kai A. Konrad and Dan Kovenock

Publication Date: March 2008

Keyword(s): Alliance formation puzzle, budget constraints and military conflict

Programme Area(s): Public Economics

Abstract: The formation of an alliance in conflict situations is known to suffer from a collective action problem and from the potential of internal conflict. We show that budget constraints of an intermediate size can overcome this strong disadvantage and explain the formation of alliances.

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Bibliographic Reference

Konrad, K and Kovenock, D. 2008. 'The Alliance Formation Puzzle and Capacity Constraints'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6741