Friday, April 09, 2010

The Economics of Dueling

The Deadliest of Games: The Institution of Dueling.
Recent historical research indicates that ritualistic dueling had a rational basis. Basically, under certain social and economic conditions, individuals must ght in order to maintain their personal credit and social standing. We use a repeated two-player sequential game with random matching to show how the institution of dueling could have functioned as a costly but incentive-compatible means by which individuals could demonstrate their good faith dealings by defending their "honor".

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