Abstract

This paper considers the case of Kashmir to examine the relation between the people of the contested land (Indian-occupied Kashmir) and one of the nation states claiming it (India, in this case) in a game-theoretic framework. The motivation for this paper was whether it was possible to rationalize the lack of democratic space in Kashmir, relative to other states in India (especially since the founding fathers of the country had announced such democratic practices to be the guiding principles of the new nation) and at the same time, a highly rigid stance of the Indian Government on the Kashmir issue. An otherwise standard political economic model is used to capture how the way in which citizens determine their allegiance to one or the other nation state (India or Pakistan) can, in turn, affect the nation state's (India's) policies towards the contested land. I conclude that if the Indian Government perceives allegiance of the citizens to be determined primarily by partisan preferences of the citizens, not so much by their preferences for policies, then the government rationally concentrates on minimizing its disutility due to deviations from its ‘most-favorite' policy. This understanding rationalizes the policies of the Indian Government towards Kashmir. More importantly, it points towards areas that need consideration for any peace-making process to take-off.

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