How to win by concession and avoid unproductive conflict

A new study published in Economic Inquiry explores the seminal question: "If we can make a deal, why fight?" The authors conclude that a combination of common knowledge and a common rate of time preference allow a potential loser to use small concessions to successfully appease an expected winner. Given the right conditions, small negotiated concessions can work, but in situations where clear and specific inequities exist, appeasement can be a dangerous thing.

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