Both sides burn resources until one quits, so the winner is whoever values the prize most or can bear loss longest.
Maynard Smith's 1974 model. The winner is not the stronger but the one who values the prize most or can bear loss longest, which is why patent litigation and strikes are decided by balance sheets.
In practice
- A small firm with a good patent settles for a tenth of its value because it cannot fund three more years of discovery.
- Two supermarkets on the same road hold a price war until one parent company loses patience, and the survivor raises prices within a month.