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Living in the Jungle or Together and in Peace?

The existing literature on conflicts extensively argues that countries may find a peaceful settlement, in which they renounce fighting. In this paper we try to formalize a model, in which countries focus on a different and more attractive solution for their disputes. More specifically, we the case in which they merge, creating a new entity, instead of simply renouncing fighting. We stress the welfareimplications of this choice, as well as the fact that the merging process is not necessarily unchangeable, but it can collapse depending on the parameters of the model. Beyond the literature on conflicts, this paper can also be linked to the one on countries secession/unification.