This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Microeconomics
  4. August 2018
  5. When to Confront: The Role of Patience

When to Confront: The Role of Patience

  • Alvaro Sandroni
  • Can Urgun
American Economic Journal: Microeconomics
vol. 10, no. 3, August 2018
(pp. 219-52)
Download Full Text PDF

Abstract

This paper examines the effects of patience on ordinary conflicts such as divorce, price wars and commercial litigation. Players optimally decide when, if ever, to start a destructive confrontation. In the unique equilibrium, there is a tight connection between patience, aggressiveness and strength. In particular patience may lead to immediate confrontation (the most inefficient outcome). This inefficiency is caused by preemptive moves that deny option values to the opponent.

Citation

Sandroni, Alvaro, and Can Urgun. 2018. "When to Confront: The Role of Patience." American Economic Journal: Microeconomics, 10 (3): 219-52. DOI: 10.1257/mic.20150309

Additional Materials

JEL Classification

  • C73 Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
  • D74 Conflict; Conflict Resolution; Alliances; Revolutions
There are no comments for this article.
Login to Comment