Israel and Palestine: the slow road to peace or the fast track to mutual annihilation?

This paper outlines the nature of the post World War II conflict between Israel and Palestine over land and borders. It demonstrates the weaknesses in the political systems of both countries that make it difficult to resolve outstanding differences. It examines the nature of bargaining costs, distinguishing clearly between the Coase and the Machiavelli theorem. It uses the hawk–dove game model to explain war and peace relationships between Israel and Palestine evident over the period 1948–2007. It evaluates the implications for the peace process of some future proliferation of nuclear arms that breaks Israeli nuclear hegemony in the Middle East.