Urban Mobilization and Urban Development: Strategic Interactions between Residents and Developers in a Conflict

Abstract

This article discusses the interactions between developers and residents in the situation of urban conflicts. Based on Thomas Schelling's theory, we model urban disputes as strategic bargaining and show that it is characterized by mutually exclusive preferences and, as a consequence, the lack of a mutually beneficial outcome. The sequential game model with full information indicates that for developers concessions (significant changes or cancellation of the construction project) are the least preferred outcome, and the residents who are dissatisfied with the construction, expect no concessions from the developer and prefer either not to get involved in the conflict or use low-cost forms of mobilization. Finally, the model predicts that the significant characteristics of the political context can change the expectations of players, correcting the course of the game.