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Konrad, Kai A. and Kovenock, Dan (2009): The alliance formation puzzle and capacity constraints. In: Economics Letters, Vol. 103, No. 2: pp. 84-86

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The formation of an alliance in conflict situations is known to suffer from a collective action problem and from the potential of internal conflict. We show that budget constraints of an intermediate size can overcome this strong disadvantage and explain the formation of alliances. © 2009 Elsevier B.V. All rights reserved.

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