13:30 - 15:00
Panel Session 4
Room: Zoom
Moderator/s:
Delegating War
Giulio Iacobelli
Paris School of Economics - Université Paris 1 Pantheon Sorbonne, PARIS

Governments often delegate the fight for control over natural or political resources to local armed groups. This paper presents a model of proxy war with two governments and two militias in which governments delegate conflict by sending non-negotiable offers to militias. Offers are composed of monetary transfers and of a sharing rule of political influence. Armed groups are positioned along a continuum representing the ideological misalignment between each militia and its government sponsor. I study a principal-agent model with two principals and two agents and characterize the optimal contracts under complete and incomplete information about the militias’ ideological positions. The analysis shows that with incomplete information armed groups receive lower transfers but are left with higher political independence. When governments strategically choose whether to fight by delegation or engage directly in conflict, I show that equilibria can be characterized in function of the local support to militias. If governments compete to recruit the same armed group, the militia carves out higher rents and pledges allegiance to the government ideologically closer.


Reference:
Fr-P4-03
Session:
International Relations and Conflict
Presenter/s:
Giulio Iacobelli
Topic:
EU Politics
Presentation type:
Oral presentation
Room:
Zoom
Date:
Friday, 19 June
Time:
14:00 - 14:15
Session times:
13:30 - 15:00

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