Public Affairs, Public Policy and Public Administration Commons^™

The Second-Order Impact Of Relative Power On Outcomes Of Crisis Bargaining: A Theory Of Expected Disutility And Resolve, Tatevik Movsisyan

Graduate Program in International Studies Theses & Dissertations

How does structure shape behavior and outcomes in crisis bargaining? Formal bargaining models of war rely on expected utility theory to describe first-order effects, whereby the payoffs of war determine actors’ “resolve” to fight as a function of costs and benefits. Value preferences of risk and future discounting are routinely treated as predefined and subjective individual attributes, outside the strategic context of bargaining or independent from expected utility. However, such treatment fails to account for context-conditional preferences sourcing from actors’ expectations of relative gain or loss. Drawing on a wealth of experimental evidence from behavioral economics, but without departing from …