is transparency a force for peace?

47
Is Transparency a Force for Peace? * Alexandre Debs and Jessica Chen Weiss April 2, 2012 Abstract We argue that democratic transparency is a force for conflict. By making it eas- ier for domestic audiences to evaluate government performance during international crises, transparency exacerbates domestic reputational concerns and incentives to escalate. Statements by the political opposition inform the public about the util- ity and appropriateness of escalation, enabling citizens to discern the government’s competence. Four case studies illustrate the role of opposition statements in re- vealing the political circumstances rather than the government’s resolve, thereby shaping domestic incentives to use force. Keywords: transparency, interstate crisis, audience cost, democratic peace * We thank Seok-ju Cho, Justin Fox, David Lake, Nuno Monteiro, and participants at Stanford University, the University of California, Berkeley, and the University of California, San Diego for excellent comments, and Anna Fritzsche, Debbie Gim, Andrew Henderson, Andrew Macklis, Helena Malchione, Jalal Osman, Jaya Wen, and Jared Webber for excellent research assistance. Alexandre Debs thanks CISAC (Stanford) and BCEP (University of California at Berkeley) for their hospitality in the 2011-2012 academic year. Jessica Weiss thanks the Ohio State University and Mershon Center for their hospitality in the 2011-2012 academic year. All remaining errors are our own. Dept. of Political Science, Yale U. email: [email protected]. Dept. of Political Science, Yale U. email: [email protected]. 1

Upload: lecong

Post on 02-Jan-2017

220 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Is Transparency a Force for Peace?

Is Transparency a Force for Peace?∗

Alexandre Debs† and Jessica Chen Weiss‡

April 2, 2012

Abstract

We argue that democratic transparency is a force for conflict. By making it eas-

ier for domestic audiences to evaluate government performance during international

crises, transparency exacerbates domestic reputational concerns and incentives to

escalate. Statements by the political opposition inform the public about the util-

ity and appropriateness of escalation, enabling citizens to discern the government’s

competence. Four case studies illustrate the role of opposition statements in re-

vealing the political circumstances rather than the government’s resolve, thereby

shaping domestic incentives to use force.

Keywords: transparency, interstate crisis, audience cost, democratic peace

∗We thank Seok-ju Cho, Justin Fox, David Lake, Nuno Monteiro, and participants at StanfordUniversity, the University of California, Berkeley, and the University of California, San Diego for excellentcomments, and Anna Fritzsche, Debbie Gim, Andrew Henderson, Andrew Macklis, Helena Malchione,Jalal Osman, Jaya Wen, and Jared Webber for excellent research assistance. Alexandre Debs thanksCISAC (Stanford) and BCEP (University of California at Berkeley) for their hospitality in the 2011-2012academic year. Jessica Weiss thanks the Ohio State University and Mershon Center for their hospitalityin the 2011-2012 academic year. All remaining errors are our own.†Dept. of Political Science, Yale U. email: [email protected].‡Dept. of Political Science, Yale U. email: [email protected].

1

Page 2: Is Transparency a Force for Peace?

1 Introduction

Is transparency a force for peace? International relations scholars have reached a con-

sensus in the affirmative. Since states have incentives to misrepresent their resolve,

information problems may cause bargaining breakdown and trigger war (Fearon, 1995).

Transparency is said to reduce information problems and facilitate the peaceful settle-

ment of disputes (Schultz, 1998, 2001), potentially explaining why democracies rarely

if ever fight each other (Russett, 1993). This consensus rests on an overly optimistic

representation of domestic contestation and opposition statements as fully lifting infor-

mational barriers to peace, while downplaying the effect of electoral competition on the

government’s incentives for war.

The bargaining literature on democratic transparency makes two unrealistic assump-

tions: that a country’s resolve is fully attributable to the government’s innate compe-

tence, mettle, or willingness to use force, and that the domestic opposition is fully

informed about the country’s resolve. First, we argue that a country’s resolve, defined

as a willingness to bear the costs of fighting, is partly determined by external factors, call

them “circumstances,” which affect the costs and benefits of military action. Whereas re-

solve is usually equated with a government’s type, we highlight the importance of outside

factors, including allied support for the use of force, the international legitimacy of mili-

tary action, intelligence estimates of the military’s ability to achieve tactical objectives,

the likelihood of “quagmire” or broader regional conflict, as well as the humanitarian

and geostrategic consequences of inaction. A government’s innate preferences are only

one component of a country’s resolve.

Second, we argue that the opposition has expertise about the circumstances but

may not have key access to information about the government’s willingness to incur

the costs of war. Although the opposition has an informational advantage over the

electorate and the foreign government, it does not manage the military and may not be

aware of operational plans. A partially informed opposition cannot reveal the country’s

resolve. Rather, their comments help the public understand the costs and benefits of

2

Page 3: Is Transparency a Force for Peace?

military action,1 thereby shaping the domestic incentives and “optics” surrounding the

government’s decision.

By arguing that opposition statements reveal information about circumstances rather

than the government’s resolve, we conclude that public competition for office is less con-

ducive to peace than conventionally understood. When public audiences cannot discern

the circumstances or must rely on official interpretations, the international outcome does

not fully reveal the government’s competence. Backing down or standing firm means

less when the policy costs or benefits are unknown. When circumstances are known,

domestic audiences are better able to evaluate whether the government’s behavior on

the international scene was the result of competence or simply good fortune. Like-

wise, audiences may be less critical of concessions, such as the withdrawal of troops or

demobilization of forces, if opposition leaders agree that the circumstances warrant it.

Transparency thus prevents the government from hiding behind the circumstances,

exacerbating domestic reputational concerns that increase the government’s willingness

to use force. Although the revelation of unfavorable circumstances gives the government

political cover to compromise, this knowledge also creates incentives for the govern-

ment to escalate and demonstrate its competence. Even when the opposition indicates

that escalation is too costly under the circumstances, warranting compromise, a leader

concerned about her reputation for resolve may be tempted to demonstrate her ability

to manage conflict at relatively low cost. By contrast, the revelation of favorable cir-

cumstances makes it difficult for even a less resolved government to compromise, lest

it convey weakness before domestic audiences. Thus, leaders become more reluctant to

sue for peace when the circumstances are known, making conflict more likely.

We structure the argument as follows. Section 2 reviews the relevant literature.

Section 3 presents the theory. Section 4 illustrates the logic of our argument with

qualitative evidence. Section 5 concludes. Formal results are in the appendix.

1On the role of elite cues in guiding public opinion, see, e.g., Almond (1950); Lippmann (1955);

Erskine (1963); Sobel (1983); Larson (2000); Holsti (2004); Canes-Wrone (2006); Page and Bouton

(2006); Berinsky (2007); Groeling and Baum (2008).

3

Page 4: Is Transparency a Force for Peace?

2 Literature Review

Democratic transparency was once seen as a diplomatic liability. On his first visit to

China, Nixon told Zhou Enlai to use a Chinese interpreter because U.S. officials “have

a problem keeping secrets” (Mann, 1999, 41). The literature has since reversed course,

viewing transparency as essential to credible communication. Anticipating domestic

sanctions for publicly escalating and then conceding, accountable leaders can lock in

a tough bargaining position and coerce adversaries into making concessions (Fearon,

1994). Choosing to generate such “audience costs” signals resolve, especially when a fully

informed and unfettered political opposition can call the government’s bluff (Schultz,

1998, 2001). Therefore, “democracy facilitates peaceful conflict resolution by overcoming

informational asymmetries that can cause bargaining to break down” (Schultz, 1999,

233), offering a potential explanation for the democratic peace.2

Yet audience costs remain controversial. Scholars have debated the willingness of

domestic audiences to punish leaders who get caught bluffing (Schultz, 1999; Ashworth

and Ramsay, 2010; Snyder and Borghard, 2011). Some argue that bluffing reveals incom-

petence and therefore warrants punishment (Smith, 1998; Guisinger and Smith, 2002;

Sartori, 2002), but this does not explain “why voters would ascribe lower competence

to those who make a threat and then fail to intervene than those who refrain from mak-

ing the threat in the first place.” (Schultz, 1999, 237). Others argue that democracies

rarely issue explicit threats (Trachtenberg (2011), but see Slantchev (2012)), win more

often through military coercion (Downes and Sechser, 2011), and are constrained by the

“policy costs” of using force more than by past rhetoric (Snyder and Borghard, 2011).

In fairness, leaders need not make “threats” to engage domestic audiences and may do

so through troop mobilization or public protests (Weiss, N.d.). But one pillar in the

literature–that democratic transparency makes conflict less likely–remains unshaken.

We argue that the consensus on transparency rests on a restrictive view of elite

2For experimental evidence on audience costs, see Tomz (2007); Trager and Vavreck (2011); Leven-

dusky and Horowitz (forthcoming).

4

Page 5: Is Transparency a Force for Peace?

discourse on foreign policy. The opposition does not simply confirm or discredit displays

of resolve. Instead, it informs the electorate about the circumstances surrounding a

conflict and comments on the appropriate course of action. As such, elite statements

may convince a domestic audience that using force is warranted, in turn rationalizing

the decision to punish a leader who fails to follow through on a tough stance. Thus,

the conceptual distinction between “audience costs” (the cost of backing down after

public escalation) and “policy costs” (the cost of implementing a policy that is out of

sync with the electorate’s preferences) is narrower than previously argued. Moreover,

domestic audiences need not value the country’s reputation more highly in order to

sanction a leader for accepting a peaceful offer, as Slantchev (2006, 2011) suggests was

an “unstated assumption” of prior models. Their choice sets simply differ: a leader

decides between accepting a peaceful offer or waging war, while citizens decide whether

to re-elect the leader. A leader may accept a peaceful offer despite the electoral cost if

she judges that the cost of conflict is too high. Citizens may nevertheless replace her if

they infer that she is incompetent.

Reassessing the nature of transparency yields more pessimistic conclusions about

democratic crisis behavior. In the theory of audience costs, democracy is a force for

peace because opposition statements reveal information about a country’s resolve, al-

leviating the foreign country’s risk-return trade-off. Says Schultz (2001, 17), “what is

different about democratic systems is that their preferences are more transparent.”3

Yet this approach ignores the effect of elite discourse on the domestic audience, which in

turn influences the government’s preferences for war and peace. A growing literature has

studied the dangers of transparency, yet it assumes that transparency reveals political

actions (Canes-Wrone, Herron and Shotts, 2001; Stasavage, 2004, 2007; Prat, 2005; Fox,

2007; Fox and Stephenson, 2011; Fox and Van Weelden, 2011).4 In our framework, trans-

3By contrast, we may observe opposition members endorsing the government in an electoral dicta-

torship yet assign no meaning to such statements if we believe they were obtained under coercion.4Likewise, standard models of audience costs assume that they are either exogenous parameters

(Schultz, 1998, 2001; Baliga and Sjostrom, forthcoming), which may be avoided if threats are made in

private (Kurizaki, 2007; Ramirez, 2011), or an exogenous function of the bargaining outcome, relative to

5

Page 6: Is Transparency a Force for Peace?

parency does not reveal political actions; the electorate can always observe whether the

government decides to go to war or accept a peaceful offer. Instead, transparency reveals

the circumstances surrounding an action, enabling the electorate to evaluate the govern-

ment’s competence. By giving foreign policy choices greater meaning and consequence

for the fate of leaders, transparency exacerbates the government’s domestic reputational

concerns, making it tougher for the government to compromise and increasing the risk

of war.5

Although we focus on the effect of transparency on crisis behavior, future work

should reassess the conditions under which meaningful transparency obtains. The lit-

erature has reached a consensus that democratic transparency relies on the potentially

conflicting goals of an informed opposition: the national interest and their electoral

prospects (Ramsay, 2004).6 While potentially biased by partisan or office-seeking incen-

tives, politicians may still provide credible information if they condition their statements

on circumstances. For example, typically dovish politicians do not always oppose the

use of force.7 Several leading U.S. and British politicians who supported the war in

Afghanistan vehemently opposed the invasion of Iraq, citing the absence of compelling

evidence and multilateral support. Before the war in Afghanistan, Liberal Democrat

leader Charles Kennedy pledged his support, stating: “The evidence to hand is indeed

persuasive. Persuasive as to culpability and persuasive as to breathtaking criminality”

(Russell, 2001). Yet Kennedy refused to support the Iraq war, saying: “We do not

believe there is a case for war which has been established under these procedures in the

absence of a second [U.N.] resolution” (Kallenbac and Sparrow, 2003). In the United

a public claim (Tarar and Leventoglu, 2009, 2010, 2011). None endogenizes audience costs as a function

of transparency.5In some sense, the paper generalizes the conclusions of Debs and Goemans (2010) to a setting where

the leader has reputational concerns (for other leader-based explanations of conflict, see Jackson and

Morelli (2007); Wolford (2007, forthcoming); Baliga, Lucca and Sjostrom (2011)).6Other factors include a free media (Slantchev, 2006) or international institutions (Thompson, 2006;

Chapman, 2007; Fang, 2008).7Likewise, typically hawkish politicians do not always support the use of war, as we illustrate below

in the case of the U.S. intervention in Haiti, which Republicans opposed.

6

Page 7: Is Transparency a Force for Peace?

States, the late Democratic senator Ted Kennedy supported the war in Afghanistan but

was one of two dozen senators who voted against the resolution authorizing war in Iraq.

Nevertheless, it is not clear that conflicting goals are necessary or sufficient for informa-

tion revelation.8 Politicians may ignore their own assessment of a crisis and either rally

around the flag or hew to the party line.9 Characterizing the general conditions under

which transparency arises deserves further consideration.

3 Formal Model

3.1 Set-Up

This is a game with two countries, Home (H) and Foreign (F ). There are three players

in the home country: the government (G), the opposition (O), and the electorate (E).

For simplicity, and following the literature, F is a unitary actor.

The two countries bargain over the division of a ‘pie’ of size 1. Let F offer a share

x to H, keeping 1 − x for itself. The home government may accept (a = A) or reject

(a = R) the offer, triggering war. War is a costly lottery, i.e. it costs cH for players

in country H, cF for F , and it is won by H with probability p, with the victorious

country gaining control of the full pie.10 For simplicity, and following the literature, cF

is common knowledge. We assume that cH is either low (c) or high (c) and depends on

two factors: the government’s “type” (t), either competent (tc) or incompetent (ti), and

“circumstances” (ω), either favorable (ωf ) or unfavorable (ωu). Let the probability that

the cost of war is low, γ(t, ω), be greater under a competent government and favorable

circumstances, i.e.

γ(tc, ω) ≥ γ(ti, ω)∀ω (1)

8See Propositions 4, 5.9Statements are meaningful only if they are expected to be (technically, there may always exist a

‘babbling equilibrium’).10For simplicity, politicians and citizens bear the same cost of war. For models relaxing this assump-

tion, see Jackson and Morelli (2007); Debs and Goemans (2010).

7

Page 8: Is Transparency a Force for Peace?

γ(t, ωf ) ≥ γ(t, ωu) ∀t (2)

The electorate and foreign country are uninformed about the type of the government

and the circumstances. Their prior belief is that the government is competent with

probability µ0 and circumstances are favorable with probability q. The opposition has

expertise about the political circumstances and the opportunity to reveal this informa-

tion publicly. Technically, nature sends them a private message m ∈{m1,m2

}and they

send a public signal s ∈ {s1, s2}. We assume that the government is partially responsible

for cH , and circumstances are “important” in determining cH , and that the opposition is

partially informed about cH . Technically, this means that both (1) and (2) hold strictly;

that a competent type in unfavorable circumstances is more likely to face a high-cost war

than an incompetent type in favorable circumstances (E[c|tc, ωu] > E[c|tci, ωf ], where

E[c|t, ω] = [γ(t, ω)c+ (1− γ(t, ω))c] is the expected cost of war for a leader of type t in

circumstances ω);11 and that the message from Nature correctly reveals circumstances

(m = m1 = ωf if ω = ωf and m = m2 = ωu if ω = ωu). Let µ(s, x, a) be the electorate’s

posterior beliefs that the government is competent after signal s, offer x and action a.12

Politicians in the home country (G and O) care about the outcome on the interna-

tional scene and the private rent from holding office, putting weight αi ∈ (0, 1] on the

former (i ∈ {G,O}) and 1−αi on the latter. The electorate cares about the outcome on

the international scene and the type of the politician elected, putting weight αE ∈ (0, 1]

on the former and 1− αE on the latter. Following the literature, the electorate prefers

the “competent” type and re-elects the government with probability ρ (µ(s, x, a)), where

ρ (.) is an increasing function. Finally F , a unitary actor, only cares about the outcome

on the international scene.

11On relaxing this assumption, see footnote 23 and proposition 6.12For simplicity, cH is not observed before the election decision. Our results hold as long as cH does

not fully reveal the type of the government.

8

Page 9: Is Transparency a Force for Peace?

3.1.1 Timing and Solution Concept

The game proceeds as follows:

1. Nature sends a signal to O

2. O sends a public signal

3. F offers a peaceful division of the pie

4. G accepts or rejects F ’s offer

5. E decides whether to re-elect G

6. Payoffs are accrued

We solve for a Perfect Bayesian Equilibrium of this dynamic game of incomplete infor-

mation. PBEs require that strategies are optimal given the players’ beliefs and that

beliefs are obtained using Bayes’ rule whenever possible. To further restrict strategies

off the equilibrium path, we impose Criterion D1 (Cho and Kreps, 1987). We assume

that O and F play pure strategies. A pure strategy for O is a function from its in-

formation set (here{ωf , ωu

}) into the signal space

{s1, s2

}. We say that democracy

is meaningfully transparent if O plays a separating equilibrium, revealing its signal,

and after any history in the continuation game, public beliefs are that O’s message

was truthful. We compare this equilibrium to a pooling equilibrium, where O’s strat-

egy is independent of its information.13 A pure strategy for F is a mapping from

the signal space{s1, s2

}into the interval [0, 1]. A strategy for G is a mapping from

the type space,{tc, ti

}, the set of circumstances

{ωf , ωu

}, the signal space

{s1, s2

},

and the interval offers [0, 1] into a distribution over acceptance and rejection decisions

{A,R}. We assume that G plays a cut-off strategy, accepting an offer x if and only

if x ≥x(t, ω, s∗ (ω)). We call x(t, ω, s∗ (ω)) the government’s “minimum demands,”

13A third possibility is that O plays a separating equilibrium and there is no restriction on off-the-

equilibrium-path beliefs in the continuation game. This would imply putting positive probability on an

event that was deemed impossible after O’s signal. We discuss this possibility in comparing our results

with those of audience costs theory (Propositions 4 and 5).

9

Page 10: Is Transparency a Force for Peace?

i.e. the minimum terms acceptable along the equilibrium path in a pure strategy

PBE. We assume that if x(t, ω, s∗ (ω)) is interior, G is indifferent about accepting the

offer, i.e. UG(t, ω, s∗ (ω) , x(t, ω, s∗ (ω)), A) = UG(t, ω, s∗ (ω) , x(t, ω, s∗ (ω)), R), where

UG(t, ω, s, x, a) is G’s expected payoff as a function of the parameters of the model and

the players’ actions.14

3.2 Solution

Consider G’s decision to accept or reject an offer x. We have:

UG(t, ω, s, x,A) = αGx+ (1− αG)ρ (µ(s, x,A)) (3)

UG(t, ω, s, x,R) = αG(p− E[c|t, ω]) + (1− αG)ρ (µ(s, x,R)) (4)

Then we can order the government’s minimum demands: the greater the expected cost of

fighting, the less willing the government to fight and the smaller its minimum demands.

Thus, minimum demands increase with competence and with favorable circumstances

(Claim 1). Since incompetent types are keener to avoid war, the decision to accept

peace sends a signal of incompetence to the electorate. Even when the circumstances are

unknown, obfuscating the government’s signal, the electorate knows that incompetent

types are more likely to settle and competent types are more likely to reject. As a result,

peaceful offers must compensate the government for the domestic cost of appearing eager

to compromise.

Next we note that the electoral cost of peace increases with transparency. Figure 1

illustrates the government’s minimum demands, should they be interior.

14Cut-off strategies help in obtaining a unique (interior) equilibria and facilitate comparison with

existing models. However, they may produce perfect Bayesian equilibria which are not sequential equi-

libria.

10

Page 11: Is Transparency a Force for Peace?

0   1  

Share  of  the    pie    offered    to  country  H  

No  Meaningful  Transparency  

x(ti,ωu,snmt*(ωu))  x(tc,ωu,snmt*(ωu))  x(ti,ωf,snmt*(ωf))   x(tc,ωf,snmt*(ωf))  

0   1  

Share  of  the    pie    offered    to  country  H  

Meaningful  Transparency  

x(ti,ωu,smt*(ωu))   x(tc,ωu,smt*(ωu))  

0   1  

Share  of  the    pie    offered    to  country  H  

x(ti,ωf,smt*(ωf))   x(tc,ωf,smt*(ωf))  

Unfavorable  Circumstances  

Favorable  Circumstances  

Figure 1: Interior Minimum Demands in the Baseline Model

If democracy is not meaningfully transparent, i.e. circumstances are not revealed,

then the electorate’s inference problem is difficult. The electorate does not know if it

should attribute the reluctance to wage war to the leader’s incompetence or to unfa-

vorable circumstances. If democracy is meaningfully transparent, i.e. circumstances

are revealed, then the electorate’s inference problem is easier. If the circumstances are

known, the electorate can infer the government’s competence from its actions. For exam-

ple, an incompetent government that accepts its minimum offer reveals its incompetence,

creating incentives to mimic the competent type by rejecting the offer and demanding

more.15

15If interior, the minimum demands of all governments weakly increase, and strictly unless the govern-

ment is competent under favorable circumstances. In this case, the electorate knows that the competent

type under favorable circumstances is the most willing to reject peaceful offers. Thus, whether or not

there is transparency, rejecting an offer that all other types would accept signals that the government is

competent, whereas accepting reverts back to the prior.

11

Page 12: Is Transparency a Force for Peace?

Figure 2 illustrates another example where only the minimum demands of the com-

petent government under unfavorable circumstances are interior.16

Share  of  the    pie    offered    to  country  H  

No  Meaningful  Transparency  

x(tc,ωu,snmt*(ωu))   x(ti,ωf,snmt*(ωf))=1    

1  Share  of  the    pie    offered    to  country  H  

Meaningful  Transparency  

0=x(ti,ωu,smt*(ωu))   x(tc,ωu,smt*(ωu))  

0  Share  of  the    pie    offered    to  country  H  

Unfavorable  Circumstances  

Favorable  Circumstances  

p+cF  

0=x(ti,ωu,snmt*(ωu))  

x(tc,ωf,snmt*(ωf))=1    

x(ti,ωf,snmt*(ωf))=1    

x(tc,ωf,snmt*(ωf))=1    

Figure 2: Bargaining Range in the Baseline Model, an Illustration

Without meaningful transparency, this government faces the same reelection prob-

ability whether he accepts or rejects his minimum demand, since the electorate simply

infers that circumstances were unfavorable if the offer is accepted and favorable oth-

erwise.17 Thus a bargaining range exists and peace may obtain under no meaningful

transparency. With meaningful transparency, however, the circumstances are known,

16If the government is incompetent and circumstances are unfavorable, the direct cost of war is so high

that he accepts any offer. If circumstances are favorable, the direct cost is so low that any government

rejects any offer (given electoral concerns).17The government’s minimum demand is x(tc, ωu, snmt∗ (ωu)) = p− E [c|tc, ωu].

12

Page 13: Is Transparency a Force for Peace?

and by accepting its minimum demands the government forgoes the opportunity to sig-

nal its competence.18 As a result, meaningful transparency, by exacerbating a leader’s

reputational concerns, may eliminate the bargaining range and make war inevitable.

More generally:

Proposition 1 With a partially responsible government, where circumstances are im-

portant, and a partially informed opposition, meaningful transparency is a force for war.

Proof. See the Appendix.

3.3 Discussion

We now discuss the implications for audience cost theory, revisiting three of its premises:

first, public acts of escalation generate a credible threat of domestic punishment; second,

transparency is a force for peace; third, regular and public competition for office gener-

ates transparency. The literature has focused on the first but has not, in our opinion,

sufficiently questioned the other two.

First, our approach addresses current critiques of audience costs. In our model, it

is unnecessary to assume that a threat is made: the fear of domestic sanctions affects

international bargaining even if the government does not talk. It is also unnecessary to

assume that the electorate cares about a mismatch between words and deeds: voters

sanction the government if they are convinced that circumstances were favorable, thus

attributing failure on the international scene to government incompetence. Moreover,

the electorate need not care more about the country’s reputation than the government

does. These actors face different choices: the government chooses between war and peace,

and the electorate chooses between the incumbent and the challenger. A government

may accept a peaceful offer, even if it reveals its incompetence, if a war would prove too

costly. The electorate may oust a government that revealed incompetence, no matter

how important the country’s reputation.19

18The government’s minimum demand is x(tc, ωu, smt∗ (ωu)) = p−E [c|tc, ωu] + 1−αGαG

[ρ (1)− ρ (µ0)].19Sufficient conditions for the existence of offers which would be accepted even if they lead to the

government’s demise are p > E [c|tc, ω] and ρ (.) being increasing (so that x(tc, ω, smt∗ (ω)) > 0; see (8)).

13

Page 14: Is Transparency a Force for Peace?

Second, the conditions under which transparency is a force for peace are more fragile

than conventionally understood. The previous section showed that if we adopt more

realistic assumptions about the opposition’s information and the impact of external

circumstances, transparency is a force for war. We now argue that the problem with the

conventional wisdom runs deeper. In the theory of audience costs, war occurs due to the

foreign country’s risk-return trade-off. Assuming that the government is fully responsible

for the cost of war and the opposition is fully informed, i.e. (1) holds strictly, and (2)

holds with equality, transparency can be a force for peace according to the standard

logic (Fearon, 1995).20 If t is not revealed, F runs a risk-return trade-off: it may deem

that the concessions needed to appease the competent type are too generous, instead

offering terms acceptable only to the incompetent type. If t is revealed, F can compute

the most generous terms it can extract from G without risking war, and peace prevails.

In short:

Proposition 2 With a fully responsible government and a fully informed opposition,

meaningful transparency is a force for peace. Proof. See the Appendix.

This logic is compelling, but it is fragile. The canonical model rests upon the as-

sumption that transparency fully reveals the government’s resolve, enabling the foreign

government to calculate its optimal offer. Assume instead that the opposition is only

partially informed about the type of the government (and consider the case where the

government only cares about the national interest, αG = 1). War occurs if the foreign

offer is insufficient to meet the government’s minimum demand, i.e. the foreign coun-

try makes a mistake in its risk-return trade-off, offering terms that are only acceptable

to the incompetent government when the government is actually competent. Figure 3

illustrates the effect of the opposition’s signal on foreign beliefs about the government’s

type.

20The model of war with rational unitary actors is equivalent to the case where αG = 1. Under

meaningful transparency, µ(s, x,A) = µ(s, x,R) ∀(s, x), so that F ’s risk-return trade-off is unaffected by

αG.

14

Page 15: Is Transparency a Force for Peace?

0   1  

Beliefs  that  government  is  competent  

F’s  op7mal  offer:                  x*  =p-­‐E[c|ti]                                                  x*  =p-­‐E[c|tc]          

μ  

Outcome:                                War  is  Possible                                                Peace  Prevails          

μ0  

Effect  of  Transparency  on  the  likelihood  of  war:                      

                     No  Effect                        Decreases            Increases                No  Effect      

μ0  

Figure 3: Effect of Transparency with a Fully Responsible Government, Partially In-formed Opposition

If the opposition’s signal is insufficiently informative, then its revelation does not

affect the foreign country’s risk-return trade-off and the probability of war remains un-

changed. Otherwise, the opposition’s signal may increase or decrease the likelihood of

war. If the foreign government’s prior is that the government is likely incompetent,

transparency has no effect unless the opposition signals that the government is com-

petent, convincing the foreign country to make the generous offer. In this case, the

probability of an offer generous enough to satisfy both types increases and the likeli-

hood of war decreases. By the same logic, if the foreign government’s prior is that the

government is likely competent, transparency has no effect unless the opposition signals

that the government is incompetent, convincing the foreign country to make the less

generous offer. In this case, war becomes more likely, as it reduces the probability that

the foreign offer is generous enough to satisfy the competent type. Thus, transparency

does not necessarily reduce the likelihood of war if the opposition’s signal only partially

15

Page 16: Is Transparency a Force for Peace?

reveals the government’s type. In sum:

Proposition 3 With a fully responsible government and partially informed opposition,

meaningful transparency does not necessarily reduce the likelihood of war. Proof. See

the Appendix.

Yet if transparency fully reveals the government’s type, why does meaningful trans-

parency obtain? According to conventional wisdom, the opposition is truthful because

it balances two potentially conflicting objectives: their electoral prospects and national

welfare (or αO ∈ (0, 1); Ramsay 2004). For example, it would be rational for the oppo-

sition to reveal the government’s competence if doing so improves national welfare. Yet

if transparency reveals the government’s type, the country receives its reservation value

for war. Thus, there is no drawback for the opposition in claiming that the government

is incompetent, because doing so will not hurt the national interest, but there is a strict

electoral benefit.21 In short:

Proposition 4 With a fully responsible government and a fully informed opposition,

meaningful transparency cannot obtain in equilibrium if the opposition balances its elec-

toral prospects and national welfare. Proof. See the Appendix.

Characterizing the general conditions under which meaningful transparency obtains

is beyond the scope of this paper.22 Yet we believe this question deserves more attention

than it currently receives.

21In Ramsay (2004), the type space of the government is richer than the message space of the opposition

(the former is continuous, the latter is binary), so that the opposition’s message does not fully reveal the

type of the government, and governments can extract rents. In our set-up, we may construct separating

Perfect-Bayesian equilibria which do not satisfy meaningful transparency. Yet the assumption that the

opposition weighs its electoral prospects and the national welfare (αO ∈ (0, 1)) is neither necessary nor

sufficient for their existence (Proposition 5).22We provide an example in Figure 2 and Proposition 1. There, F claims the entire pie; under

unfavorable circumstances, the incompetent government accepts any offer and the competent type cannot

be appeased; under favorable circumstances, neither type can be appeased. Thus, the foreign offer is

independent of the opposition’s signal, which may rationally be truthful if it cares only about the national

interest.

16

Page 17: Is Transparency a Force for Peace?

Summing up, we conclude that the literature has been overly charitable toward the

effect of transparency and audience costs on peace. Conventionally, war arises from

uncertainty over the government’s resolve to fight, producing a risk-return tradeoff as

the foreign government calculates its offer. Actions that publicly engage the domestic

audience, including opposition statements that are overheard by foreign observers, are

said to reveal the government’s resolve and help locate a bargain preferable to fighting.

Yet this view of democratic transparency omits critical features of strategic competi-

tion between the government and opposition. As in international bargaining, domestic

politics are plagued by information problems. Uncertainty about the government’s type

creates incentives for incumbents to signal resolve or competence to the electorate as

well as foreign audiences. Thus, opposition signaling not only fails to ameliorate the

foreign government’s risk-return tradeoff; it also adds a domestic reputational cost to

accepting peace.

In reaching this conclusion, we made three assumptions. First, the opposition does

not have full information about the government’s resolve. Second, contrary to existing

models, resolve is partly a function of external “circumstances.”23 Third, consistent

with the existing literature, the electorate values “competence.”24 We believe these

23In the intermediate situation, where circumstances affect the cost of war but not significantly, i.e.

(2) holds strictly but E [c|tc, ωu] < E[c|ti, ωf

], predictions are intermediate. The minimum demands

of type ti in circumstances ωu strictly increase under meaningful transparency, but those of type tc in

circumstances ωu strictly decrease: the latter’s reputation for accepting a peaceful offer is even worse

under no meaningful transparency, since the electorate cannot rule out the possibility that circumstances

are favorable and the government is incompetent (Proposition 6).24This does not mean that the electorate is war-mongering. “competent” leaders are desirable since

they manage wars more effectively but also because they obtain better peaceful terms. In other words,

an electorate may prefer a competent type even if it wishes to avoid a costly war, since the threat of war

sustain better peaceful terms. Yet this conventional wisdom ignores the fact that competent leaders may

drag their country into a costly, otherwise avoidable war. To use a different vocabulary, say that leaders

who face a low cost of war are hawkish, and let the electorate prefer dovish leaders in unfavorable

circumstances, when war should perhaps be avoided. Then meaningful transparency has competing

effects: if it reveals unfavorable circumstances, it creates incentives for appearing dovish. The net effect

is in general indeterminate, but remains if the electorate perceives the benefit of hawkish (or ‘resolved’)

17

Page 18: Is Transparency a Force for Peace?

assumptions are empirically plausible but warrant further investigation in their own

right. We now illustrate the logic of our argument with qualitative evidence.

4 Empirical Evidence

We highlight the role of opposition statements and external circumstances in four crises

from the ICB dataset (Table 1). Crises are split evenly in terms of the opposition’s

reputation on foreign issues (dovish vs. hawkish), its actual stance in the crisis, and the

crisis outcome.

Table 1: Opposition Statements and Crisis Outcomes

Crisis Incumbent Opposition Position Outcome

India-Pakistan, 2001-2 BJP Congress Hawkish Victory

US-Iran, 2006-7 Republican Democrat Dovish Compromise

Israel-Lebanon, 1993 Labor Likud Hawkish Compromise

US-Haiti, 1994 Democrat Republican Dovish Victory

Although the first two crisis outcomes correspond to the conventional prediction (op-

position support, peaceful victory; opposition dissent, peaceful compromise), the content

of the opposition’s signal did not simply confirm or undermine government signals of

resolve. The opposition’s main role was to emphasize the circumstances surrounding a

crisis, framing the public debate about the costs and benefits of using force and enhanc-

ing the electorate’s ability to evaluate the government’s handling of a crisis.

In the 2001 India-Pakistan crisis, the Indian opposition endorsed a forceful reac-

tion to the attacks on the Indian Parliament, claiming the support of the international

community in fighting terrorism. India prevailed in the crisis through U.S. and British

pressure, whose support the opposition had anticipated. In the 2006-07 US-Iran crisis,

leaders to outweigh those of dovish leaders (see Proposition 7). Note also that the preference for dovish

leaders may simply expand an already-existing bargaining range (since war is inefficient), leaving the

probability of conflict unchanged.

18

Page 19: Is Transparency a Force for Peace?

Democratic opposition leaders objected that the circumstances did not warrant military

action against Iran, questioning the evidence of a nuclear weapons program, citing par-

allels to faulty intelligence on Iraq, and pointing to the lack of military resources and

allied support. President Bush wished to signal resolve, but eventually de-escalated the

crisis, after a new National Intelligence Estimate stated that Iran had halted its nuclear

weapons program in 2003.

The other two cases illustrate that opposition statements exacerbate reputational

concerns, creating incentives for the government to demonstrate resolve and enabling the

government to earn domestic plaudits for standing tough. The outcomes also contravene

the canonical prediction (opposition support, battlefield compromise; opposition dissent,

battlefield victory). In the 1993 Israel-Lebanon crisis, Likud claimed that circumstances

were ripe for war, that terrorist attacks warranted a forceful response, and inaction

would be due to Rabin’s incompetence. In the 1994 US-Haiti case, Republicans claimed

that circumstances did not warrant war, and that Haiti’s strategic value was too low

to justify any cost in fighting. By defying his naysayers and initiating a successful

campaign, Clinton demonstrated his competence as commander in chief.

4.1 India-Pakistan Crisis: India Parliament Attack, 2001

On December 13, 2001, armed gunmen attacked the Indian Parliament, killing 14. After

Indian police indicated that the attackers had ties to two Pakistan-based organizations,

Jaish-e-Mohammed and Lashkar-e-Taiba, Prime Minister Vajpayee ordered a general

mobilization for war, Operation Parakram, and demanded that Pakistan take respon-

sibility. In January, under pressure from the United States, Pakistan banned the two

organizations and pledged to stop cross-border terrorism. As Kapur (2007, 135-6) writes:

“According to top officials, India did not attack during Operation Parakram because the

deployment had been a success; it had prevented further terrorism on the scale of the

Parliament attack and had secured a Pakistani pledge to prevent any future infiltration,

thereby obviating the need for an Indian offensive.” For a few months, peace prevailed

19

Page 20: Is Transparency a Force for Peace?

on terms favorable to India.25

The parliamentary debates surrounding the mobilization of Operation Parakram on

December 18 illustrate several important features of democratic transparency: first, the

importance of external circumstances in affecting the government’s resolve to use force,

particularly the existence of an international consensus against terrorism; second, the

role of opposition politicians from the Congress Party as partially-informed political

experts whose statements helped reveal the nature of the international circumstances

affecting the likelihood that the government would use force; and third, the foreign

recognition of these external circumstances as bolstering Indian resolve, which led to

peaceful concessions by Pakistan and the resolution of the crisis.

Opposition leaders drew attention to the international circumstances which favored

Indian retaliation as well as the opposition’s partial information about the situation.

Even as Congress leader Manmohan Singh confirmed that the opposition was “one with

the nation in its solemn resolve that we shall not make any compromises with these

terrorist gangs,” Singh also argued that the U.S. war on terror created an important

opportunity for India, noting that “what is applicable in dealing with the terrorists in

Afghanistan must be applicable to these terrorists also who have perpetrated such a

ghastly act on the Indian territory.” (Singh, 2001). Opposition leaders also referenced

their ignorance of operational details, pledging their support for “any well-considered

step the government may contemplate or take to counter terrorism” (Dugger, 2001) and

calling upon the government “to take the Opposition into confidence.” (Singh, 2001). In

response, the BJP spokesman agreed to take the Opposition into confidence. The follow-

ing day, in a televised speech to Parliament, PM Vajpayee stated: “We are also forging

an international consensus as has been suggested by members of parliament. And, the

consensus is with us on this question.” Vajpayee also adopted the same language as

opposition leaders in criticizing the U.S. and Britain for urging India to “observe re-

straint.” (n.d., 2001c) Members of the opposition Samajwadi Party and Congress Party

25Disrupted in May 2002 by an attack on an Indian army base in Kaluchak, Jammu, which is coded

as a new crisis by the ICB.

20

Page 21: Is Transparency a Force for Peace?

had demanded, “Should we take permission from foreign powers to protect our citizens

and our borders?” and “Why did we dance to the tunes of George Bush and Tony

Blair?” (n.d., 2001b).

India’s rhetoric and massive war mobilization convinced the United States to pres-

sure Pakistan for concessions. As India and Pakistan continued to mobilize for war amid

border clashes, the U.S. State Department listed the two groups as terrorist organiza-

tions. Following a telephone call by President Bush to Pakistani President Musharraf

asking for “additional strong and decisive measures to eliminate the extremists who seek

to harm India, undermine Pakistan, and provoke war,” Musharraf publicly promised to

crack down on the organizations and arrested several hundred militants (Nayak and

Krepon, 2006, 50). It is, of course, impossible to separate the coercive effect of India’s

military mobilization from the additional credibility lent by the domestic debate sur-

rounding the appropriateness and desirability of Indian retaliation. Former Indian Army

Vice Chief of Staff V.K. Sood noted: “This was India’s finest hour: Pakistan and the US

were coerced–for the first and last time–by India’s military mobilization.” (Sood and

Sawhney, 2003, 87, 94)

Yet the evidence also suggests that favorable international circumstances –namely,

the international recognition that India would be justified in pursuing its attackers–

helped convince the U.S. that India would indeed use force, necessitating additional

U.S. pressure on Pakistan to defuse the crisis. As Chari, Cheema and Cohen (2007, 167)

write: “The embassy’s position on the crisis was clear from the start. [Ambassador]

Blackwill and his team saw the Indian buildup as a direct and understandable response

to the terrorist attack in Srinagar and on the Indian parliament. Although it was

important to bring an end to the buildup and the heightened risk of war, the Indians

did have, in the words of one U.S. official, ‘moral parity’ with the United States when

it came to the war on terrorism.”

The advantage to India was understood, if not appreciated, by Pakistani observers.

One Pakistani newspaper, The Nation, accused India of “play[ing] on the theme of

21

Page 22: Is Transparency a Force for Peace?

terrorism to earn world sympathy” (n.d., 2001a). Jang, another newspaper, decried

Tony Blair’s statements in India as “voicing Vajpayee’s views equating the Kashmir

freedom struggle with terrorism... it seems that [Blair] has tried to please India by

saying, ‘we condemn all those who finance or provide support to terrorists.”’ (n.d.,

2002).

4.2 U.S.-Iran Nuclear Crisis, 2006-07

In January 2006, Iran informed the IAEA that it would resume its nuclear research

and development activities. During the ensuing crisis, the United States obtained bi-

partisan and international support for sanctions, but the “military option” remained

controversial. It was not until December 2007, when a new U.S. National Intelligence

Estimate stated that Iran had suspended work on its nuclear weapons program in 2003,

that the Bush administration, while continuing to press for sanctions, de-escalated the

crisis, backing off on the implied threat of force. Although dovish opposition statements

corresponded to the international outcome predicted by the canonical model–peaceful

compromise rather than victory– the primary role played by the Democratic opposition

was to argue that circumstances were unfavorable for war and press for the appropriate

response, rather than to reveal information about the administration’s resolve.

In 2006, following reports that the Bush administration was considering air strikes

against Iran, House and Senate Democrats introduced nonbinding resolutions calling on

the President not to initiate military action without Congressional authorization. After

a Republican-authored House report faulted U.S. intelligence agencies for insufficient

effort to investigate Iran’s nuclear weapons program, ranking Democrat Harman said

the report “took a number of analytical shortcuts that present the Iran threat as more

dire.” (Linzer, 2006). From January to December 2007, the crisis intensified. The White

House dispatched a second aircraft carrier group to the Gulf and increased Patriot missile

defenses in Kuwait and Qatar, described by Defense Secretary Gates as an effort to gain

leverage over Iran rather than as a prelude to military action (Katzman, 2007). Leading

Democrats emphasized that the circumstances did not warrant the use of force, citing

22

Page 23: Is Transparency a Force for Peace?

the lack of military resources and support from allies and within Congress. Senator

Rockefeller, Chairman of the Intelligence Committee, questioned the administration’s

intelligence, saying: “To be quite honest, I’m a little concerned that it’s Iraq again...

This whole concept of moving against Iran is bizarre....I don’t think that policy makers

in this administration particularly understand Iran.” (Mazzetti, 2007).

Although Democrats had regained control of Congress, their dovish statements–

including further attempts to prevent the government from using force without Congres-

sional approval or use funds to attack Iran–were ineffectual. They neither undermined

the administration’s resolve nor suggested to outside observers that the implied threat

of force was a bluff. In February, the administration stated that it had evidence that

Iran was training and supplying insurgents in Iraq, and Vice President Cheney said that

military action had not been ruled out. Despite repeated denials that the Bush adminis-

tration was planning to attack Iran, the increased possibility prompted explicit concern

from foreign officials, including French President Sarkozy, Russian President Putin, as

well as IAEA head ElBaradei, who worried that his reports on Iran’s activities might

“give additional argument to new crazies who say, ‘Let’s go and bomb Iran.”’ (Cooper,

2007).

The NIE findings were publicly released on December 3. Democrats seized on the

opportunity. “The key judgments show that the Intelligence Community has learned its

lessons from the Iraq debacle,” Rockefeller said. “This demonstrates a new willingness

to question assumptions internally, and a level of independence from political leadership

that was lacking in the recent past.”’ (n.d., 2007b). Harman said that “good policy

based on this assessment is to sheath the sabers.” (Harman, 2007). Even Representative

Engel, a Democrat who had opposed attempts to limit the administration’s ability to

use force, called the NIE “troubling,” saying: “It makes one harken back to the flawed

Iraq intelligence.” (n.d., 2007b)

Democrats accused Bush of misrepresenting the circumstances in pressing for war.

Representative McDermott said that the NIE shows that the Democrats “told the Amer-

23

Page 24: Is Transparency a Force for Peace?

ican people the truth.” (n.d., 2007b). Senator Biden pointed out that as late as October,

Bush had said a nuclear-armed Iran could trigger “World War III,” (n.d., 2007a) well

after he should have received preliminary briefings. Biden added: “After all we’ve been

through, for this president to knowingly disregard or once again misrepresent intelligence

about the issue of war and peace, I find it outrageous.” (n.d., 2007a).

Bush understood that the NIE undermined the military option, but remained stead-

fast in claiming resolve. Though he declared the report “a great discovery”(n.d., 2007c),

Bush stated that “our policy remains the same... all options are on the table.” (Sciolino,

2007). In fact, the NIE report altered the diplomatic context. “The war option is off

the table,” said a French official. And while China might have allowed a new round

of sanctions, the NIE report gave “the Chinese an opportunity to get off the hook,” a

senior administration official acknowledged (Myers and Cooper, 2007).

4.3 Israel-Lebanon Crisis: Operation Accountability, 1993

On July 25, 1993, Israel launched Operation Accountability, a weeklong air, artillery and

naval counter-response to Hezbollah rocket attacks from southern Lebanon. Hawkish

opposition leaders highlighted the appropriateness of a more forceful response, imbuing

their commentary with the presumption of expertise–knowledge not of the government’s

resolve, but of the military’s ability to prevail, the costs of delay, and the tactical ap-

propriateness of major operations rather than limited artillery strikes. These opposition

statements highlighted the favorable circumstances for using force and appeared to have

a galvanizing effect on the Labor government of Yitzhak Rabin, whose decision to take

military action in Lebanon was at least partly intended to shore up his security cre-

dentials and deflect attention from his willingness to compromise with Syria and the

PLO. The operation was successful on the battlefield, forcing a wave of refugees to flee

southern Lebanon, but also drew international condemnation and pressure to agree to

a ceasefire with Hezbollah, ending the crisis.

Following the Hezbollah attack on Israeli forces in Southern Lebanon, leaders from

24

Page 25: Is Transparency a Force for Peace?

both Likud and Tsomet, the largest opposition parties, demanded the government re-

spond more forcefully. Likud spokesman Yossi Olmert stressed the need to strike deep

into Lebanon, saying “We have to strike at the head of the snake, at its main bases in

Beirut and the Bekaa valley, and not at its tail in southern Lebanon.” (Beeston, 1993b).

Tsomet member Moshe Peled criticized the government for its weak response, saying

that “lobbying artillery shells was not an appropriate reaction.” (Izenberg and Rotem,

1993). Two days before the government launched the operation, Likud politician Ariel

Sharon stated on Israeli radio the need to act soon, stating that “unless the army took

decisive action now, it might later be forced to invade Lebanon in even larger numbers.”

(Beeston, 1993a). Although the opposition was privy to much of the information that

the government had, the opposition did not directly participate in making policy or di-

recting the use of force. The government made two presentations to the Knesset (Maoz,

2008, 228), but as Maoz notes, “None of the key decisions during this period–such as the

escalation of warfare due to kidnapping and assassination raids or the two large-scale

military operations in 1993 and 1996–was thoroughly debated in the Knesset.”

Hawkish statements by the domestic opposition appeared to push the government to

take tougher action against Hezbollah in south Lebanon, hoping to provide political cover

for their efforts to negotiate with Syria and the Palestinians. In the lead-up to Operation

Accountability, the Rabin government had come under fire from the Israeli right for being

willing to compromise with Syria on the Golan Heights and showing flexibility toward the

Palestinians. According to a private opinion poll that Rabin initiated in May 1993, more

than half of respondents viewed Rabin’s handling of negotiations with the Palestinians

as too “soft.” As Auerbach and Greenbaum (2000, 49) write: “In view of the data

that suggested people’s distrust in Rabin’s ability to maintain security and effectively

conduct negotiations, he could either halt the fast movement toward agreement with

the PLO, or he could take a dramatic decision in order to recover his credibility as a

tough and trustworthy leader. Rabin opted for the second alternative.” In the same

vein, Maoz (2008, 213,255) suggests that “A show of force was seen as a way to ward off

domestic criticism of government policy. [...] Suspecting that he would have to reveal

25

Page 26: Is Transparency a Force for Peace?

to the public a sharp policy turnaround in terms of its relations with the PLO or with

Syria, Rabin decided to demonstrate resolve, directing the IDF to launch Operation

Accountability.”

According to Auerbach and Greenbaum (2000, 49), the operation was a success in

terms of restoring Rabin’s credibility in the public mindset. Asked whether the oper-

ation was successful, 81% said yes; asked whether one could “trust Rabin’s judgment

concerning security and political issues” in light of Operation Accountability and other

policies over the past year, 64% responded positively. Although Rabin would be assassi-

nated before the next election, the domestic boost in credibility strengthened his ability

to pursue negotiations with Syria and the PLO.

4.4 U.S. Intervention in Haiti, 1994

In 1994, the Clinton administration sent troops to Haiti under U.N. auspices to oust

the military junta and restore the democratically elected president, Jean-Bertrand Aris-

tide. Although the Republican opposition expressed serious reservations about the wis-

dom of military intervention in the months prior to the mid-September invasion, these

statements did not undermine Clinton’s resolve. In May, the House narrowly passed a

nonbinding amendment to the fiscal defense authorization bill opposing military inter-

vention. “There is no emergency in Haiti requiring the dispatch of American troops,”

said Senate minority leader Dole, who sponsored a resolution expressing the view that

U.N. approval is insufficient to authorize the use of U.S. troops (n.d., 1994). “It is time

to call a halt to this reckless rush to invade Haiti,” said Senator Lugar (Price, 1994). In

early August, Senate Republicans sponsored a measure requiring Congressional approval

for an invasion.

While active in voicing dissent, Republicans were disengaged from the planning pro-

cess. According to Girard (2004, 63):

Because of a two-week summer recess lasting until 12 September 1994,

Congress remained largely silent as the Haiti crisis reached its climax. Since

26

Page 27: Is Transparency a Force for Peace?

Clinton was himself enjoying a 13-day vacation in Martha’s Vineyard, Congress

deluded itself into thinking that Haiti was not a pressing issue. Then, ten

days before the invasion, the administration advocated an invasion with re-

newed stridency....The first troops were thus scheduled to land on Sunday

night, one day before congressmen could express formal opposition.

Only after the invasion on September 19 did the Senate Armed Services Committee

hold a hearing on Haiti. Gingrich, the Republican whip, declared: “We are drifting

steadily into a quicksand of misery. It is an enormous miscalculation by the Clinton

administration.” (Walker, 1994). The New York Times quoted “a typical Republican

view” from Representative Roukema, who said: “The withdrawal of U.S. forces should

be complete and immediate. Restoring Jean-Bertrand Aristide to the presidency of Haiti

is not worth the life of one member of our armed forces” (Greenhouse, 1994).

George Stephanopoulos, an adviser to President Clinton, suggested that the reluc-

tance of Congressional Republicans to intervene militarily gave the President a political

opportunity to demonstrate his leadership in foreign affairs:

Although the invasion was not politically motivated, and full of political

risk, it could be a political plus. Clinton was constantly being called ’spine-

less’ and ‘wishy-washy’-Doonesbury was depicting him as a talking waffle.

Paradoxically, the more the Republicans screamed, the more they helped

the president. Taking a lonely stand on a tough issue like Haiti was the best

way for Clinton to demonstrate presidential character.26

Following through with the military operation helped Clinton shake off the image

of indecision created by his past efforts to deal with the Haiti situation. The previous

October, the USS Harlan County turned around shortly after arriving at Port-au-Prince.

Although it had sailed to Haiti to provide humanitarian assistance as part of the newly

26Stephanopoulos, George. 1999. All Too Human: A Political Education (NY: Little Brown), p. 308,

cited in Girard (2004, 72).

27

Page 28: Is Transparency a Force for Peace?

established Joint Task Force Haiti Assistance Group, it was met by Haitian gunboats

and anti-American demonstrations chanting “Remember Somalia!”. Unable to “guaran-

tee the safety of the vessel and its personnel,” the U.S. government ordered the ship to

return to Guantanamo Bay, in a retreat that “shocked many Americans as well as the in-

ternational community, who perceived that the ship departed under threats...Numerous

plans officers believe that the incident backed the United States into a corner and forced

the eventual U.S. invasion of Haiti to ‘save face.”’ (Kretchik, 1997, 39-41,83).

The outcome of the Haiti case defies both the prediction of the audience cost model

and its mechanisms. By signaling that the circumstances were unfavorable, the opposi-

tion enabled Clinton to burnish his credentials without undermining the signal of resolve

that led the Haitian junta to capitulate. Republican statements that the costs of in-

tervention were not worthwhile did not dissuade Clinton from authorizing the invasion,

and public support for the invasion rose ten points after its bloodless success (Brecher

and Wilkenfeld, 2000).

5 Conclusion

In this paper, we investigate the effect of transparency on interstate conflict. We present

a model of domestic competition for office in which statements by the domestic opposi-

tion reveal information about the wisdom of using force abroad, providing informational

cues that enable the electorate to discern the government’s foreign policy competence.

By introducing the less restrictive assumption that opposition elites are partially rather

than fully informed, we find that transparency creates domestic incentives for conflict

in addition to revealing information about a state’s resolve.

A clear implication of our paper is that audience costs theory has been given too

much credit as a possible explanation for the democratic peace.27 Interestingly, semi-

27For alternative strategic explanations of the democratic peace, see Bueno de Mesquita et al. (1999);

Jackson and Morelli (2007); Fearon (2008); Debs and Goemans (2010); Baliga, Lucca and Sjostrom

(2011).

28

Page 29: Is Transparency a Force for Peace?

nal contributions warned against this risk. Fearon (1994, 582,586) assessed the claim

that democratic leaders face greater audience costs as a “plausible working hypothe-

sis,” which “could conceivably help explain” the democratic peace.28 Likewise, Schultz

(1998, 840) stated that the model’s relevance to the democratic peace is “more sugges-

tive than conclusive.” Schultz (2001, 11) asserts: “This book is not primarily about the

democratic peace.”

Certainly, one should be cautious about the ability of any theory to offer a complete

explanation of the democratic peace with a single feature, when the differences between

dictatorships and democracies are so rich.29 Yet it still possible to evaluate, logically,

the effect of greater transparency on the likelihood of conflict, abstracting away from

other competing forces. Contrary to the conventional wisdom, we conclude that greater

transparency is a force for war, not peace.

Our framework opens interesting avenues for future research, including the general

conditions under which transparency arises as well as a more comparative theory of

domestic sources of conflict across regime types. When there is no regular and pub-

lic competition for office, citizen protests may be an effective, and perhaps the only,

mechanism of information relevation (Weiss, N.d.). Contrasting the conditions and de-

gree to which dictatorships and democracies face reputational concerns, depending on

the available mechanisms of information revelation, is an important question for future

research.

28Fearon recently proposed an explicit theory for the democratic peace which does not rely on the

audience cost argument (Fearon, 2008).29Fearon (1994) believes there are two features of democracy which have opposite effects on the degree

of audience costs: democratic leaders can be replaced more easily than their democratic counterparts, but

the consequences of losing office are milder. Schultz (1998, 840) and Schultz (2001, 11) are concerned

about the theory being monadic and the inconclusive and overdetermined nature of the democratic

peace. For possible solutions to the concerns raised by Fearon (1994) and Schultz (1998, 840), see Debs

and Goemans (2010). For another answer to the concern by Schultz (1998, 840), see Levy and Razin

(2004). For an argument that the difference dictatorships and democracies may be small relative to the

differences between non-democratic regime types, see Weeks (2008).

29

Page 30: Is Transparency a Force for Peace?

6 Appendix

Claim 1 Let (t, ω) and (t′, ω′) be such that E [c|t, ω] > E [c|t′, ω′] and s∗ (ω) = s∗ (ω′).

Then either x(t, ω, s∗ (ω)) = x(t′, ω′, s∗ (ω′)) ∈ {0, 1} or x(t, ω, s∗ (ω)) < x(t′, ω′, s∗ (ω′)).

Proof. If x(t, ω, s∗ (ω)) is interior,

x(t, ω, s∗ (ω)) = p− E [c|t, ω] +1− αGαG

[ρ (µ (s, x(t, ω, s∗ (ω)), R))− ρ (µ (s, x(t, ω, s∗ (ω)), A))]

(5)

< p− E[c|t′, ω′

]+

1− αGαG

[ρ (µ (s, x(t, ω, s∗ (ω)), R))− ρ (µ (s, x(t, ω, s∗ (ω)), A))]

(6)

or (t′, ω′) strictly prefers to reject x(t, ω, s∗ (ω)) after signal s∗ (ω) = s∗ (ω′), i.e. x(t, ω, s∗ (ω)) <

x(t′, ω′, s∗ (ω′)). By the same logic, if x(t, ω′, s∗ (ω′)) is interior, then x(t, ω, s∗ (ω)) <

x(t′, ω′, s∗ (ω′)); x(t, ω, s∗ (ω)) = 1 implies x(t, ω′, s∗ (ω′)) = 1 and x(t, ω′, s∗ (ω′)) = 0

implies x(t, ω, s∗ (ω)) = 0.

Proof. (Proof of proposition 1). Write smt∗ (ω) and snmt∗ (ω) for O’s strategy when,

respectively, democracy is meaningfully transparent and when it is not (let smt∗(mj)

= sj

, prob(snmt∗

(mj)

= s1)

= q ∈ (0, 1) ∀j ∈ {1, 2}). If minimum demands are interior,

they are unique and equal to the following values:

(i) Under meaningful transparency:

x(ti, ω, smt∗ (ω)) = p− E[c|ti, ω

]+

1− αGαG

[ρ (1)− ρ (0)] (7)

x(tc, ω, smt∗ (ω)) = p− E [c|tc, ω] +1− αGαG

[ρ (1)− ρ (µ0)] (8)

(ii) Without meaningful transparency:

x(ti, ωu, snmt∗ (ωu)) = p− E[c|ti, ωu

]+

1− αGαG

(µ0

µ0 + (1− µ0) q

)− ρ (0)

](9)

30

Page 31: Is Transparency a Force for Peace?

x(tc, ωu, snmt∗ (ωu)) = p− E [c|tc, ωu] (10)

x(ti, ωf , snmt∗(ωf)

) = p− E[c|ti, ωf

]+

1− αGαG

[ρ (1)− ρ

(µ0 (1− q)1− qµ0

)](11)

x(tc, ωf , snmt∗(ωf)

) = p− E[c|tc, ωf

]+

1− αGαG

[ρ (1)− ρ (µ0)] (12)

(iii) if x(t, ω, smt∗ (ω)) and x(t, ω, snmt∗ (ω)) are interior, then x(t, ω, smt∗ (ω)) ≥

x(t, ω, snmt∗ (ω)) ∀ (t, ω), with the inequality being strict for some (t, ω).

(iv) Meaningful transparency may eliminate the bargaining range, i.e. for some (t, ω)

we may have

x(t, ω, smt∗ (ω)) > p+ cF > x(t, ω, snmt∗ (ω)) (13)

(v) The following completes the description of a perfect Bayesian equilibrium where

meaningful transparency obtains. Assume that αO = 1 and the following conditions hold:

E[c|ti, ωu

]> p+

1− αGαG

[ρ (1)− ρ (0)] (14)

E [c|tc, ωu] < min

{p+

1− αGαG

[ρ (µ0)− ρ (0)] ,−cF +1− αGαG

[ρ (1)− ρ (µ0)]

}(15)

E[c|ti, ωf

]< p+

1− αGαG

[ρ (µ0)− ρ (0)]− 1 (16)

Consider the strategies: O sends s∗(mj)

= sj, j ∈ {1, 2}; F offers x∗(sj)

= 0 ∀j ∈

{1, 2}; if ω = ωf and s = s1, G rejects any x ∈ [0, 1]; if ω = ωf and s = s2, G

rejects x if and only if x ∈[0, p− E

[c|t, ωf

]+ 1−αG

αG[ρ (1)− ρ (µ0)]

); if ω = ωu, t = ti,

G accepts any x ∈ [0, 1] ∀s; if ω = ωu, t = tc, s = s1, G rejects x if and only if

31

Page 32: Is Transparency a Force for Peace?

x ∈[0, p− E [c|tc, ωu] + 1−αG

αG[ρ (µ0)− ρ (0)]

); if ω = ωu, t = tc, s = s2, G rejects x

if and only if x ∈[0, p− E [c|tc, ωu] + 1−αG

αG[ρ (1)− ρ (µ0)]

); E re-elects the incumbent

with probability ρ (µ(s, x, a)), where µ(s1, x, A) = 0, µ(s1, x,R) = µ0, µ(s2, x, A) = 0 if

x < p− E [c|tc, ωu] + 1−αGαG

[ρ (1)− ρ (µ0)], µ(s2, x, A) = µ0 otherwise, µ(s2, x,R) = 1.

They form an equilibrium where meaningful transparency obtains and the probability

of war is weakly greater than under no meaningful transparency, with the difference being

strict if either E [c|tc, ωu] ≥ p or µ0 ≥ p−E[c|tc,ωu]p+cF

.

Consider (i). By claim 1 and Bayes’ rule, we have that if minimum demands are

interior, they satisfy (7) and x(tc, ω, smt∗ (ω)) satisfies

x(tc, ω, smt∗ (ω)) = p−E [c|tc, ω]+1− αGαG

[ρ(µ(smt∗ (ω) , x(tc, ω, smt∗ (ω)), R

))− ρ (µ0)

](17)

µ(smt∗ (ω) , x(tc, ω, smt∗ (ω)), R

)is not pinned down by Bayes’ rule. If αG = 1, it need

not be, since x(tc, ω, smt∗ (ω)) = p− E [c|tc, ω] and (8) is satisfied. If αG < 1, Criterion

D1 implies µ(smt∗ (ω) , x(tc, ω, smt∗ (ω)), R

)= 1.

Consider (ii). Using claim 1 and Bayes’ rule we obtain (9), (10), and (11). Applying

Criterion D1 and the logic of the proof of (i), we obtain (12).

Consider (iii). This is straightforward. Clearly, the inequality holds strictly ∀ (t, ω) 6=(tc, ωf

)and weakly for (t, ω) =

(tc, ωf

).

Consider (iv). This is straightforward given (iii) and (v).

Consider (v). Beliefs are obtained using Bayes’ rule along the equilibrium path, and

completed off the equilibrium path to ensure sequential rationality.

Now consider F ’s strategy. After signal s1, F is indifferent between any offer x ≤

p + cF (all are rejected along the equilibrium path) and may offer x∗(s1)

= 0. After

signal s2, F has a unique optimal offer, x∗(s2)

= 0.

Now consider O’s strategy. After message m1, O’s payoff is µ0[p− E

[c|tc, ωf

]]+

(1− µ0)[p− E

[c|tc, ωi

]]for any signal, and there is no profitable deviation from sending

s = s1. After message m2, O’s payoff is µ0 [p− E [c|tc, ωu]] for any signal, and there is

no profitable deviation from sending s = s2.

32

Page 33: Is Transparency a Force for Peace?

Then we note that in this equilibrium, meaningful transparency obtains and the

probability of war is q + (1− q)µ0. Consider the equilibrium outcome under no mean-

ingful transparency. Using (15) and E [c|tc, ωu] > E[c|ti, ωf

], we have

p+ cF < p− E[c|ti, ωf

]+

1− αGαG

[ρ (1)− ρ

(µ0 (1− q)1− qµ0

)]

and there is no bargaining range with any t if ω = ωf . If E [c|tc, ωu] ≥ p, F has a unique

optimal offer, x = 0, generating a probability of war equal to q. If E [c|tc, ωu] < p, F

runs a risk-return trade-off, choosing between x = 0 and x = p−E [c|tc, ωu]. It chooses

the latter if and only if µ0 ≥ p−E[c|tc,ωu]p+cF

. If it chooses x = 0, the probability of war is

q + (1− q)µ0; otherwise it is q.

Proof. (Proof of proposition 2). Since circumstances do not affect the cost of war, drop

ω in the expected cost of war E [c|t, ω] above and use instead E [c|t]. The proposition

builds on the following results:

(i) Under meaningful transparency (where s∗(mj)

= sj, j ∈ {1, 2}) the following is

the unique equilibrium ∀αG ∈ [0, 1]: F offers x∗(sj)

= max{p− E

[c|s∗−1 (

sj)], 0}

;

G accepts x after signal s if and only if x ≥ p − E [c|t]; E re-elects the incumbent with

probability ρ (1) if s = s1 and ρ (0) if s = s2.

(ii) Meaningful transparency weakly reduces the probability of war and may strictly

do so.

(i) is straightforward. Under meaningful transparency, the probability of war is

zero. To show that this may be strictly lower than the probability of war without

meaningful transparency (where prob(s∗(mj)

= s1)

= q ∈ (0, 1) ∀j ∈ {1, 2}), assume

that p > E[c|ti]

and αG = 1, in which case there is a unique equilibrium: After any

signal s, F offers x∗ = p − E [c|tc] if µ0 ≥E[c|ti]−E[c|tc]E[c|ti]+cF , x∗ = p − E

[c|ti]

otherwise;

G accepts if and only if x ≥ p − E [c|t]; E re-elects the incumbent with probability

ρ (µ (s, x, a)), where µ (s, x, a) is given by Bayes’ rule and equilibrium strategies whenever

possible. Thus, war happens with probability µ0 > 0 if µ0 <E[c|ti]−E[c|tc]E[c|ti]+cF .

Proof. (Proof of Proposition 3). Assume that (1) holds strictly, (2) holds with equality,

prob(m = m1|t = tc

)= prob

(m = m2|t = ti

)= θ > 1/2, p > E

[c|ti]

and αG = 1.

33

Page 34: Is Transparency a Force for Peace?

Write µ1 (s) for the posterior beliefs that t = tc after O sends signal s.

(i) In any equilibrium, F offers

x∗ (s) =

p− E [c|tc] if µ1 (s) ≥ E[c|ti]−E[c|tc]

E[c|ti]+cF

p− E[c|ti]

if µ1 (s) <E[c|ti]−E[c|tc]E[c|ti]+cF

G accepts x if and only if x ≥ p − E [c|t]; E re-elects the incumbent with probability

ρ (µ (s, x, a)), where µ (s, x, a) is obtained using Bayes’ rule and equilibrium strategies

along the equilibrium path.

(ii) Meaningful transparency strictly increases the probability of war if

E[c|ti]− E [c|tc]

E [c|ti] + cF∈(

µ0(1− θ)µ0(1− θ) + (1− µ0)θ

, µ0

]

strictly reduces the probability of war if

E[c|ti]− E [c|tc]

E [c|ti] + cF∈(µ0,

µ0θ

µ0θ + (1− µ0)(1− θ)

]

and does not affect the probability of war otherwise.

(i) is straightforward. Thus, without meaningful transparency, the probability of

war is 0 ifE[c|ti]−E[c|tc]E[c|ti]+cF ≤ µ0 and µ0 otherwise. With meaningful transparency, it is 0 if

E[c|ti]−E[c|tc]E[c|ti]+cF ≤ µ0(1−θ)

µ0(1−θ)+(1−µ0)θ , µ0 (1− θ) ifE[c|ti]−E[c|tc]E[c|ti]+cF ∈

(µ0(1−θ)

µ0(1−θ)+(1−µ0)θ ,µ0θ

µ0θ+(1−µ0)(1−θ)

],

and µ0 otherwise. (ii) follows.

Proof. (Proof of Proposition 4). Under meaningful transparency, µ(s1, x, a

)= 1,

µ(s2, x, a

)= 0 ∀ (x, a) and strategies for F , G and E are in Proposition 2.

Note first that if p > E [c|tc], x∗(s1)

= p − E [c|tc] > x∗(s2), while if p ≤ E [c|tc],

x∗(s1)

= x∗(s2)

= 0.

Thus, O sends signal s1 after m = m1 (t = tc) if and only if

αOmax {p− E [c|tc] , 0}+(1− αO) (1− ρ (1)) ≥ αOmax {p− E [c|tc] , 0}+(1− αO) (1− ρ (0))

34

Page 35: Is Transparency a Force for Peace?

which does not hold, since αO ∈ (0, 1).30

Proposition 5 We solve for a pure strategy perfect-Bayesian equilibrium, i.e. where F ,

G, and O play pure strategies, though G need not play cut-off strategies. Assume that

p− E [c|t] > 0 ∀t and 1− p− cF > 0. We show:

(i) If

cF > −E[c|tc] +1− αGαG

(ρ (1)− ρ (0)) (18)

then in any pure strategy separating perfect-Bayesian equilibrium, peace prevails and

x∗ (s∗ (t)) = x(t, s∗ (t)) ≡ inf {x|UG (t, s∗ (t) , x, A) ≥ UG (t, s∗ (t) , x,R)}, where UG (t, s, x, a)

is the expected utility of a government of type t after signal s when offered x and taking

action a;

(ii) A pure strategy separating perfect-Bayesian equilibrium where peace prevails ex-

ists only if it is incentive compatible for the opposition to reveal its information, which

requires either

(ii.1)

x∗(s2)< p− E [c|tc] +

1− αGαG

(ρ(µ(s2, x∗

(s2), R))− ρ (0)

)(19)

αOx∗ (s1) ≤ αOx∗ (s2)+ (1− αO) (ρ (1)− ρ (0)) (20)

αOx∗ (s1) ≥ αO (p− E [c|tc]) + (1− αO)

(ρ (1)− ρ

(µ(s2, x∗

(s2), R)))

(21)

or (ii.2) (19) does not hold (20) holds with equality.

(iii) αO ∈ (0, 1) is not necessary for the existence of a pure strategy, separating

Perfect-Bayesian equilibrium.

(iv) αO ∈ (0, 1) is not sufficient for the existence of a pure strategy, separating

Perfect-Bayesian equilibrium.

30In addition, we can show that if p > E [c|tc], meaningful transparency cannot obtain in equilibrium

∀αO ∈ [0, 1]. Moreover, if p ≤ E [c|tc], meaningful transparency obtains in equilibrium if and only if

αO = 1 (in which case F does not face a risk-return trade-off against unitary states (αG = 1), since all

accept any offer).

35

Page 36: Is Transparency a Force for Peace?

Proof. Consider (i). We first show that in any pure strategy, separating Perfect-

Bayesian equilibrium, ∀t

x(t, s∗ (t)) ≤ p− E [c|t] +1− αGαG

(ρ (1)− ρ (0)) (22)

Indeed, UG (t, s∗ (t) , x, A) < UG (t, s∗ (t) , x,R) implies

αGx+ (1− αG) ρ (µ (s, x,A)) < αG [p− E [c|t]] + (1− αG) ρ (µ (s, x,R))

⇔ x < p− E [c|t] +1− αGαG

[ρ (µ (s, x,R))− ρ (µ (s, x,A))]

≤ p− E [c|t] +1− αGαG

[ρ (1)− ρ (0)]

and (22) follows. Together with (18), it implies that x(t, s∗ (t)) < p+ cF ∀t.

Since G plays a pure strategy, F ’s optimal strategy is well defined if and only if

UG (t, s∗ (t) , x(t, s∗ (t)), A) ≥ UG (t, s∗ (t) , x(t, s∗ (t)), R), in which case F offers x∗ (s∗ (t)) =

x(t, s∗ (t)). (i) follows.

Consider (ii). To obtain (ii.1) and (ii.2), note first that G of type ti would accept

x∗(s1)

after signal s1, since E[c|ti]> E [c|tc]. Thus, O sends signal s = s2 after

m = m2 (t = ti) if and only if (20) holds.

Next assume that G of type tc would reject x∗(s2)

after signal s2, i.e. (19) holds.

Then O sends signal s = s1 after m = m1 (t = tc) if and only if (21) holds, giving case

(ii.1).

Now assume that G of type tc would accept x∗(s2)

after signal s2, i.e. (19) does not

hold. Then O sends signal s = s1 after m = m1 (t = tc) if and only if

αOx∗ (s1)+ (1− αO) (1− ρ (1)) ≥ αOx∗

(s2)

+ (1− αO) (1− ρ (0))

so that (20) holds with equality, completing case (ii.2).

To show (iii), assume that (18) holds. Consider the following: O sends signal

s∗(mj)

= sj, j ∈ {1, 2}; F offers x∗(s1)

= p − E[c|tc], x∗(s2)

= p − E[c|ti] +

1−αGαG

(ρ (1)− ρ (0)); G accepts x if and only if x ≥ x(t, s), where x(t, s1) = p − E [c|t],

36

Page 37: Is Transparency a Force for Peace?

x(t, s2) = p − E [c|t] + 1−αGαG

(ρ (1)− ρ (0)); E re-elects the incumbent with probability

ρ (µ (s, x, a)), where µ(s1, x, a

)= 1, µ

(s2, x, A

)= 0, µ

(s2, x,R

)= 1.

They form a separating Perfect-Bayesian equilibrium if

αOE [c|tc] ≥ αO[E[c|ti]− 1− αG

αG(ρ (1)− ρ (0))

]− (1− αO) (ρ (1)− ρ (0)) (23)

conditions which may hold even if αO ∈ {0, 1}.

Indeed, by (18) peace prevails. Moreover, (19) and (21) hold, and (20) reduces to

(23). Clearly (23) holds for αO = 0 and may hold for αO = 1.

To show (iv), assume that (18) holds. There is no pure strategy, separating Perfect-

Bayesian equilibrium as long as αO < αG and (23) fails, conditions which may be

satisfied even if αO ∈ (0, 1).

Indeed, (18) ensures that peace prevails and x∗ (s∗ (t)) = x(t, s∗ (t)). If (23) fails,

then (20) and (21) are incompatible, using (22). Thus, we must have (19) failing and

(20) holding with equality. Yet if αO < αG, then if (20) holds with equality, (19) must

hold, using (22).

Proposition 6 Assume that (2) holds strictly but E [c|tc, ωu] < E[c|ti, ωf

]. Minimum

demands, if they are interior, are as follows. They are given by (7), (8) under meaningful

transparency. Without meaningful transparency, they are given by (9), (12), and

x(ti, ωf , snmt∗(ωf)

) = p− E[c|ti, ωf

]+

1− αGαG

[ρ (1)− ρ (0)]

x(tc, ωu, snmt∗ (ωu)) = p− E [c|tc, ωu] +1− αGαG

[ρ (1)− ρ

(µ0 (1− q)1− qµ0

)]

Thus, x(t, ω, snmt∗ (ω)) ≤ x(t, ω, smt∗ (ω)) holds weakly for (t, ω) ∈{(ti, ωf

),(tc, ωf

)},

strictly for (t, ω) =(ti, ωu

)and fails for (t, ω) = (tc, ωu). Proof. Straightforward.

37

Page 38: Is Transparency a Force for Peace?

Proposition 7 Assume that the re-election probability is a function of beliefs about t

and ω, ρ(µt, µω

), which satisfies the following properties: ρ

(µt, µω

)is strictly increasing

in µt ∀µω ≥ µω, strictly decreasing in µt ∀µω < µω for some µω ∈ [0, 1]; ρ(µt, µω

)is

strictly increasing in µω ∀µt ≥ µt, strictly decreasing in µω ∀µt < µt, for some µt ∈ [0, 1].

Then the government’s minimum demands, if they are interior, are unique and equal to

the following values:

(i) Under meaningful transparency:

x(ti, ωu, smt∗ (ω)) = p− E[c|ti, ωu

]+

1− αGαG

[ρ (1, 0)− ρ (0, 0)]

x(tc, ωu, smt∗ (ω)) = p− E [c|tc, ωu] +1− αGαG

[ρ (1, 0)− ρ (µ0, 0)]

x(ti, ωf , smt∗ (ω)) = p− E[c|ti, ωf

]+

1− αGαG

[ρ (1, 1)− ρ (0, 1)]

x(tc, ωf , smt∗ (ω)) = p− E[c|tc, ωf

]+

1− αGαG

[ρ (1, 1)− ρ (µ0, 1)]

(ii) Without meaningful transparency:

x(ti, ωu, snmt∗ (ωu)) = p−E[c|ti, ωu

]+

1− αGαG

(µ0

µ0 + (1− µ0) q,

q

µ0 + (1− µ0) q

)− ρ (0, 0)

]

x(tc, ωu, snmt∗ (ωu)) = p− E [c|tc, ωu] +1− αGαG

[ρ (µ0, 1)− ρ (µ0, 0)]

x(ti, ωf , snmt∗(ωf)

) = p− E[c|ti, ωf

]+

1− αGαG

[ρ (1, 1)− ρ

(µ0 (1− q)1− qµ0

,q (1− µ0)1− qµ0

)]

x(tc, ωf , snmt∗(ωf)

) = p− E[c|tc, ωf

]+

1− αGαG

[ρ (1, 1)− ρ (µ0, q)]

38

Page 39: Is Transparency a Force for Peace?

(iii) x(ti, ωu, smt∗ (ω)) S x(ti, ωu, snmt∗ (ω)) if and only if ρ (1, 0) S ρ(

µ0µ0+(1−µ0)q ,

qµ0+(1−µ0)q

);

x(tc, ωu, smt∗ (ω)) S x(tc, ωu, snmt∗ (ω)) if and only if ρ (1, 0) S ρ (µ0, 1);

x(ti, ωf , smt∗ (ω)) S x(ti, ωf , snmt∗ (ω)) if and only if ρ (0, 1) T ρ(µ0(1−q)1−qµ0 ,

q(1−µ0)1−qµ0

);

x(tc, ωf , smt∗ (ω)) > x(tc, ωf , snmt∗ (ω)) if and only if µ0 < µt.

Proof. First, note that claim 1 applies, replacing ρ (µ (s, x(t, ω, s∗ (ω)), a)) with the

equivalent ρ(µt (s, x(t, ω, s∗ (ω)), a) , µω (s, x(t, ω, s∗ (ω)), a)

). (i) and (ii) obtain using

Bayes’ rule, equilibrium strategies, and Criterion D1. (iii) follows.

References

Almond, Gabriel A. 1950. The American People and Foreign Policy. New York, N.Y.:

Harcourt Brace.

Ashworth, Scott and Kristopher W. Ramsay. 2010. “Should Audiences Cost? Optimal

Domestic Constraints in International Crises.” Princeton University Mimeo.

Auerbach, Yehudith and Charles P. Greenbaum. 2000. “Assessing Leader Credibility

during a Peace Process: Rabin’s Private Polls.” Journal of Peace Research 37(1):31–

50.

Baliga, Sandeep, David O. Lucca and Tomas Sjostrom. 2011. “Domestic Political Sur-

vival and International Conflict: Is Democracy Good for Peace?” Review of Economic

Studies 78(2):458–486.

Baliga, Sandeep and Tomas Sjostrom. forthcoming. “The Strategy of Manipulating

Conflict.” American Economic Review .

Beeston, Richard. 1993a. “Hawks call on Rabin to hit back at Hezbollah.” The Times .

Beeston, Richard. 1993b. “Israel blames Syria for border violence.” The Times .

Berinsky, Adam J. 2007. “Assuming the Costs of War: Events, Elites, and American

Public Support for Military Conflict.” Journal of Politics 69(4):975–997.

39

Page 40: Is Transparency a Force for Peace?

Brecher, Michael and Jonathan Wilkenfeld. 2000. A Study of Crisis. Ann Arbor, MI:

University of Michigan Press.

Bueno de Mesquita, Bruce, James D. Morrow, Randolph M. Siverson and Alastair Smith.

1999. “An Institutional Explanation of the Democratic Peace.” American Political

Science Review 93(4):791–807.

Canes-Wrone, Brandice. 2006. Who Leads Whom? Presidents, Policy, and the Public.

Chicago, Il.: University of Chicago Press.

Canes-Wrone, Brandice, Michael C. Herron and Kenneth W. Shotts. 2001. “Leadership

and Pandering: A Theory of Executive Policymaking.” American Journal of Political

Science 45(3):532–550.

Chapman, Terrence L. 2007. “International Security Institutions, Domestic Politics, and

Institutional Legitimacy.” Journal of Conflict Resolution 51(1):134–166.

Chari, P.R., Pervaiz Iqbal Cheema and Stephen P. Cohen. 2007. Four Crises and a

Peace Process: American Engagement in South Asia. Washington, D.C.: Brookings

Institution Press.

Cho, In-Koo and David M. Kreps. 1987. “Signaling Games and Stable Equilibria.” The

Quarterly Journal of Economics 102(2):179–222.

Cooper, Helene. 2007. “U.S. Not Pushing for Attack on Iran, Rice Says.” New York

Times .

Debs, Alexandre and H. E. Goemans. 2010. “Regime Type, the Fate of Leaders, and

War.” American Political Science Review 104(3):430–445.

Downes, Alexander B. and Todd S. Sechser. 2011. “The Illusion of Democratic Stability.”

Duke University Mimeo.

Dugger, Celia W. 2001. “India Rebuffs Pakistanis Over Inquiry Into Attack.” New York

Times .

40

Page 41: Is Transparency a Force for Peace?

Erskine, Hazel Gaudet. 1963. “The Polls: Exposure to Public Information.” Public

Opinion Quarterly 27(4):658–662.

Fang, Songying. 2008. “The Informational Role of International Institutions and Do-

mestic Politics.” American Journal of Political Science 52(2):304–321.

Fearon, James D. 1994. “Domestic Political Audiences and the Escalation of Interna-

tional Disputes.” American Political Science Review 88(3):577–592.

Fearon, James D. 1995. “Rationalist Explanations for War.” International Organization

49(3):379–414.

Fearon, James D. 2008. “A Simple Political Economy of Relations among Democracies

and Autocracies.” Paper prepared for presentation at the Annual Meetings of the

American Political Science Association, Boston, MA.

Fox, Justin. 2007. “Government Transparency and Policymaking.” Public Choice 131(1-

2):23–44.

Fox, Justin and Matthew Stephenson. 2011. “Judicial Review as a Response to Political

Posturing.” American Political Science Review 105(2):397–414.

Fox, Justin and Richard Van Weelden. 2011. “Costly Transparency.” Yale University

Mimeo.

Girard, Philippe R. 2004. Clinton in Haiti: the 1994 U.S. invasion of Haiti. New York,

N.Y.: Palgrave Macmillan.

Greenhouse, Steven. 1994. “House Panel Backs March 1 Pullout in Haiti.” The New

York Times .

Groeling, Tim and Matthew A. Baum. 2008. “Crossing the Water’s Edge: Elite Rhetoric,

Media Coverage, and the Rally-Round-the-Flag Phenomenon.” Journal of Politics

70(4):1065–1085.

41

Page 42: Is Transparency a Force for Peace?

Guisinger, Alexandra and Alastair Smith. 2002. “Honest Threats. The Interaction of

Reputation and Political Institutions in International Crises.” Journal of Conflict

Resolution 46(2):175–200.

Harman, Jane. 2007. “Harman Hails Iran NIE.” Virtual Office of Congresswoman Jane

Harman. http : //www.house.gov/list/press/ca36harman/Dec4.shtml .

Holsti, Ole R. 2004. Public Opinion and American Foreign Policy. Ann Arbor, MI:

University of Michigan Press.

Izenberg, Dan and Michael Rotem. 1993. “Barak says IDF action north of zone may be

inevitable.” Jerusalem Post .

Jackson, Matthew O. and Massimo Morelli. 2007. “Political Bias and War.” American

Economic Review 97(4):1353–1373.

Kallenbac, Michael and Andrew Sparrow. 2003. “We’re backing Blair because Saddam

is a tyrant, says Duncan Smith.” Daily Telegraph .

Kapur, S. Paul. 2007. Dangerous Deterrent: Nuclear Weapons Proliferation and Conflict

in South Asia. Stanford, CA: Stanford University Press.

Katzman, Kenneth. 2007. “Iran: US Concerns and policy responses.” CRS Report for

Congress. http : //assets.opencrs.com/rpts/RL3204820070806.pdf .

Kretchik, Walter. 1997. Planning for “Intervasion”: The Strategic and Operational Set-

ting for Uphold Democracy. In Invasion, Intervention, “Intervasion”: a Concise His-

tory of the U.S. Army in Operation Uphold Democracy, ed. John T. Fishel, Robert F.

Baumann and Walter Edward Kretchik. Fort Leavenworth, Kansas: U.S. Army Com-

mand and College Staff Press.

Kurizaki, Shuhei. 2007. “Efficient Secrecy: Public versus Private Threats in Crisis

Diplomacy.” American Political Science Review 101(3):543–558.

Larson, Eric. 2000. Putting Theory to Work: Diagnosing Public Opinion on the U.S.

Intervention in Bosnia. In Being Useful: Policy Relevance and International Rela-

42

Page 43: Is Transparency a Force for Peace?

tions Theory, ed. Miroslav Nincic and Joseph Lepgold. Ann Arbor, MI: University of

Michigan Press pp. 174–236.

Levendusky, Matthew S. and Michael C. Horowitz. forthcoming. “When Backing Down

is the Right Decision: Partisanship, New Information, and Audience Costs.” Journal

of Politics .

Levy, Gilat and Ronny Razin. 2004. “It Takes Two: An Explanation for the Democratic

Peace.” Journal of the European Economic Association 2(1):1–29.

Linzer, Dafna. 2006. “U.N. attacks House report on Iran’s nuclear program.” Washington

Post .

Lippmann, Walter. 1955. The Public Philosophy. Boston, MA: Little, Brown.

Mann, James. 1999. About Face: A History of America’s Curious Relationship with

China, from Nixon to Clinton. New York, N.Y.: Random House.

Maoz, Zeev. 2008. Defending the Holy Land: A Critical Analysis of Israel’s Security

and Foreign Policy. Ann Arbor, MI: University of Michigan Press.

Mazzetti, Mark. 2007. “Leading Senator Assails President Over Iran Stance.” New York

Times .

Myers, Steven Lee and Helene Cooper. 2007. “Bush Insists Iran Remains a Threat

Despite Arms Data.” New York Times .

Nayak, Polly and Michael Krepon. 2006. US Crisis Management in South Asia’s Twin

Peaks Crisis. Technical Report Report 57 Henry L. Stimson Center Washington, D.C.:

.

n.d. 1994. “Clinton to Make Case on Haiti; He Hopes to Win over Public on Possible

Invasion.” Dallas Morning News .

n.d. 2001a. “INDIA - PAKISTAN TENSIONS RISE FOLLOW-

ING PARLIAMENT ATTACK.” PBS Online NewsHour. http :

//www.pbs.org/newshour/updates/december01/india12− 18.html .

43

Page 44: Is Transparency a Force for Peace?

n.d. 2001b. “India Wages a War of Words; Pakistan Again Assailed for Attack, U.S. for

Its Response.” Washington Post .

n.d. 2001c. “Indian prime minister advocates diplomacy first in wake of attack on

Parliament.” BBC .

n.d. 2002. “Pakistani daily says Blair voiced Indian premier’s views at press conference.”

BBC Monitoring South Asia .

n.d. 2007a. “Comments on the New Assessment of Iran’s Nuclear Program.” New York

Times .

n.d. 2007b. “Dems seeking answers about report on Iran.” The Hill .

n.d. 2007c. “Text of President Bush’s Press Conference on Iran’s Nuclear Program.”

New York Times .

Page, Benjamin I. and Marshall M. Bouton. 2006. The Foreign Policy Disconnect: What

Americans Want From Our Leaders But Don’t Get. Chicago, Il: University of Chicago

Press.

Prat, Andrea. 2005. “The Wrong Kind of Transparency.” American Economic Review

95(3):862–877.

Price, Joyce. 1994. “Must Hill OK Haiti Invasion?” Washington Times .

Ramirez, Shawn Ling. 2011. “Diplomatic Options in the Shadow of an Audience: The

Benefits of Private Mediation.” University of Rochester Mimeo.

Ramsay, Kristopher W. 2004. “Politics at the Water’s Edge. Crisis Bargaining and

Electoral Competition.” Journal of Conflict Resolution 48(4):459–86.

Russell, Ben. 2001. “WAR ON TERRORISM: PARLIAMENT - BACKBENCHERS

URGE CAUTION OVER MILITARY ACTION.” The Independent .

Russett, Bruce. 1993. Grasping the Democratic Peace: Principles for a Post-Cold War

World. Princeton, NJ: Princeton University Press.

44

Page 45: Is Transparency a Force for Peace?

Sartori, Anne E. 2002. “The Might of the Pen: A Reputational Theory of Communica-

tion in International Disputes.” International Organization 56(1):121–149.

Schultz, Kenneth A. 1998. “Domestic Opposition and Signaling in International Crises.”

American Political Science Review 92(4):829–844.

Schultz, Kenneth A. 1999. “Do Democratic Institutions Constrain or Inform?: Con-

trasting Two Institutional Perspectives on Democracy and War.” International Orga-

nization 53(2):233–266.

Schultz, Kenneth A. 2001. Democracy and Coercive Diplomacy. Cambridge: Cambridge

University Press.

Sciolino, Elaine. 2007. “Monitoring Agency Praises U.S. Report, but Keeps Wary Eye

on Iran.” New York Times .

Singh, Manmohan. 2001. “Loose Talk Must Give Wary To A Sober Analysis.” Outlook

India. http://www.outlookindia.com/article.aspx?214065 .

Slantchev, Branislav L. 2006. “Politicians, the Media, and Domestic Audience Costs.”

International Studies Quarterly 50(2):445–477.

Slantchev, Branislav L. 2011. Military Threats: The Costs of Coercin and the Price of

Peace. New York, N.Y.: Cambridge University Press.

Slantchev, Branislav L. 2012. “Audience Costs Theory and Its Audiences.” University

of California, San Diego Mimeo.

Smith, Alastair. 1998. “International Crises and Domestic Politics.” American Political

Science Review 92(3):623–638.

Snyder, Jack and Erica Borghard. 2011. “The Cost of Empty Threats: A Penny, Not a

Pound.” American Political Science Review 105(3):437–456.

Sobel, Richard. 1983. “Political Education in Flux.” American Political Science Review

77(2):499.

45

Page 46: Is Transparency a Force for Peace?

Sood, V.K. and Pravin Sawhney. 2003. Operation Parakram: The War Unfinished. New

Delhi: Sage Publications.

Stasavage, David. 2004. “Open-Door or Closed-Door? Transparency in Domestic and

International Bargaining.” International Organization 58(4):667–703.

Stasavage, David. 2007. “Polarization and Publicity: Rethinking the Benefits of Delib-

erative Democracy.” Journal of Politics 69(1):59–72.

Tarar, Ahmer and Bahar Leventoglu. 2009. “Public Commitment in Crisis Bargaining.”

International Studies Quarterly 53(3):817–839.

Tarar, Ahmer and Bahar Leventoglu. 2010. “Public Commitment and Endogenous Crisis

Initiation.” Texas A & M University Mimeo.

Tarar, Ahmer and Bahar Leventoglu. 2011. “Public Commitments in International

Crises: Credible Signaling or Coercion?” Texas A & M University Mimeo.

Thompson, Alexander. 2006. “Coercion through IOs: The Security Council and the

Logic of Information Transmission.” International Organization 60(1):1–34.

Tomz, Michael. 2007. “Domestic Audience Costs in International Relations: An Exper-

imental Approach.” International Organization 61:821–840.

Trachtenberg, Marc. 2011. “Audience Costs: An Historical Analysis.” UCLA Mimeo.

Trager, Robert F. and Lynn Vavreck. 2011. “The Political Costs of Crisis Bargaining:

Presidential Rhetoric and the Role of Party.” American Journal of Political Science

55(3):526–545.

Walker, Martin. 1994. “Republicans Call for Early Haiti Pullout.” The Guardian .

Weeks, Jessica. 2008. “Autocratic Audience Costs: Regime Type and Signaling Resolve.”

International Organization 62(1):35–64.

Weiss, Jessica Chen. N.d. “Autocratic Signaling, Mass Audiences and Nationalist Protest

in China.” International Organization. Forthcoming.

46

Page 47: Is Transparency a Force for Peace?

Wolford, Scott. 2007. “The Turnover Trap: New Leaders, Reputation, and International

Conflict.” American Journal of Political Science 51(4):772–788.

Wolford, Scott. forthcoming. “Incumbents, Successors, and Crisis Bargaining: Leader-

ship Turnover as a Commitment Problem.” Journal of Peace Research .

47