Economic downturns are likely to cause what kind of bargaining problems for rebels and states?

Question

Quizplus · Accepted Answer

Economic downturns can lead to commitment problems for both rebels and states because both parties may be less willing or able to make concessions due to their weakened economic situation. Rebels may be less willing to disarm or compromise if they see economic opportunities in continuing their rebellion, while states may be less willing to negotiate or make concessions if they see their budget stretched thin. This can result in a stalemate or breakdown in negotiations. Information asymmetries and issue indivisibilities may also arise, but they are not directly linked to economic downturns. International intervention may be a possibility, but it is not a bargaining problem for the rebels and states themselves.

Economic Downturns Are Likely to Cause What Kind of Bargaining