Insecure Property Rights and Conflicts: How to Solve Them?

According to the leading literature, valid enforcement of property rights is a key ingredient for economic development. However, their can be problematic in international relations, which approximation an anarchic or state nature environment. In such context, we do not have third party that may sanction any illegal behaviour, since existing organizations lack necessary power force countries behave specific way. A large variety papers attempted provide self-enforcing solution conflict among players by defining bargaining range, prevent emergence war. Hence, renounce fight and leave peacefully, enforcing de facto rights. contrast, propose model contestants decide solve dispute forming union. The latter interpreted broad sense, also encompassing possibility they form new political entity. We highlight welfare implications define non-empty set parameters, support decision long run. Intuitively, from dual perspective, discloses circumstances lead deviate union path split. Therefore, our paper contributes literature about formation breakdown countries, although primary concern present with innovative conflicts. Moreover, work stresses importance guarantee peaceful development relations countries.