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Institutions, or rules of the game, govern social interactions and affect economic allocations and efficiency. Learn more about ... Zappile Courses demonstrates the bargaining model by breaking down state conflict and territory disputes through a cost-benefit analysis. This breakdown explores how states weigh the risks of warfare against potential negotiated agreements, illustrating the strategic decision-making process required to navigate international relations. When institutions change, so do the ways people interact, their economic rents and the resulting economic allocations. A short cartoon that describes how "costs of war" and the strength of armies influences whether wars can be avoided.
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