This talk proposes a simple game-theoretic framework for analyzing the relationship between the government, industry and indigenous community, especially in the context of mounting violence surrounding displacement of indigenous communities by governments for the purposes of commercial use of their habitat. It specifically takes into account the possibility of alleged 'nexus' between the government and the industry and explores its implications on the levels of conflict and utilities of the players. Munshi finds that the bias in allocation that occurs when the government and the industry enter a `nexus' can be rectified when there is resistance from the indigenous groups. Moreover, she finds that the counter-offensive launched to oppose indigenous resistance is higher when undertaken by the industry than when undertaken by the government. The Nash equilibrium occurs when there is no 'nexus' between the government and the industry and no resistance by the indigenous groups. She also explores a few extensions of the basic model and present some narrative evidence in support of the theoretical model.
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