An insecure economy under ratio and logistic conflict technologies

A model that integrates production, exchange, and conflict is used to theor etically investigate the economic behavior of groups that experience an ero sion of security within a state. The focus of our investigation is the comp arative effects of different conflict production functions (i.e., ratio and logistic) and parameters (i.e., weapons productivity, conflict decisivenes s) on the predictions of the integrated economy model. The model shows how two major analytical categories of mainstream economics-production and exch ange-can be a source of demand for arms as groups attempt to protect their economic opportunities in the face of intrastate insecurity. Conditions are also identified under which the gains from specialized production and exch ange dampen the potential for conflict and hence serve as a form of conflic t mitigation. Many of the results of the integrated model are shown to be q uite sensitive to the technology of conflict.