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A model of bargaining embedded within a random-walk model of warfare is developed. The conflict model contains aspects of both lottery-based and war-of-attrition models of conflict. Results show that future disputes are less likely to lead to armed conflict following long rather than short wars. Furthermore, should a subsequent dispute lead to armed conflict, the higher the cost and the longer the previous war, the shorter the conflict is likely to last.
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Smith et al. (2004) studied this question.
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