What conditions determine whether a civil war ends in a negotiated set
tlement or a military victory? The authors address this question by de
veloping an expected utility model of the choice between seeking an im
mediate settlement or continuing to fight in anticipation of eventual
victory. The model implies that the likelihood of a settlement varies
with estimates of the probability of winning, the time required to win
, the rate at which the costs of conflict accrue, and the payoffs for
victory versus settlement, Logistic regression results suggest that a
settlement becomes less Likely the larger the government's army and mo
re likely the longer the civil war lasts. Payoff and cost variables ha
d no effect on the likelihood of a settlement.