Stability and the distribution of power

The relation between stability and the distribution of power is an important and long-debated problem in international relations theory. The balance-of-power school argues that an even distribution of power is more stable, while the preponderance-of-power school argues that a preponderance of power is more stable. Empirical efforts to estimate this relation have yielded contradictory results. This essay examines the relation between stability and the distribution of power in an infinite-horizon game-theoretic model in which two states are bargaining about revising the international status quo. The states make offers and counter offers until they reach a mutually acceptable settlement or until one of them becomes so pessimistic about the prospects of reaching an agreement that it uses force to impose a new settlement. The equilibrium of the game contradicts the expectations of both schools and offers an explanation for the conflicting empirical estimates. In the model stability is greatest when the status quo distribution of benefits reflects the expected distribution of benefits that the use of force would impose.