TY - JOUR AU - Grossman,Herschel I. TI - Peace and War in Territorial Disputes JF - National Bureau of Economic Research Working Paper Series VL - No. 10601 PY - 2004 Y2 - July 2004 UR - http://www.nber.org/papers/w10601 L1 - http://www.nber.org/papers/w10601.pdf N1 - Author contact info: Herschel Grossman Department of Economics Box B Brown University Providence, RI 02912 Tel: 401/863-2606 Fax: 401/863-1970 AB - Why do sovereign states sometimes fail to settle territorial disputes peacefully? Also, why do even peaceful settlements of territorial disputes rarely call for the resulting border to be unfortified? This paper explores a class of answers to these questions that is based on the following premise: States can settle a territorial dispute peacefully only if (1) their payoffs from a peaceful settlement are larger than their expected payoffs from a default to war, and (2) their promises not to attack are credible. This premise directs the analysis to such factors as the advantage of attacking over both defending and counterattacking, the divisibility of the contested territory, the possibility of recurring war, the depreciation or obsolescence of fortifications, and inequality in the effectiveness of mobilized resources. ER -