Tag Archive for prospect theory

Conflict Resolution (I): Peace-making and Risk-taking

Parties who are involved in a protracted conflict must take risks in order to be able to settle their dispute. This argument may seem counter-intuitive at first, but consider the Middle East conflict as the perhaps most notorious case. For many years of on-and-off peace talks, both the Israeli government and the representation of the…

Risk Propensity and Conflict Behavior

Advisors active in conflict management need to consider what drives the conflict behavior of the parties involved in a dispute. Conflict behavior is, to a certain extent, motivated by rational strategic interests. But the escalation of a conflict also results from socio-psychological factors, such as attribution effects, as well as cognitive biases, such as framing…