This chapter discusses the theory and application of economic thought as it relates to contemporary international conflict management. Economics is the science of allocating scarce resources efficiently. Because scarcity implies making trade-offs, economics is historically concerned with balancing conflicting interests regarding the best use of scarce resources. This chapter introduces key economic concepts and approaches to resolving such problems, including economic liberalism and the prisoner’s dilemma. While competition over resources can lead to violent conflict, cooperation around shared economic objectives can serve as a peacebuilding tool, as was the case in Europe after World War II.