This study examines commercial pacifism and protracted conflict. It identifies constraints posed by protracted conflict on both the opportunity of the rivals to engage in mutually beneficial economic exchange and the impact of economic incentives on views on violence and peace. Based on this discussion, the study estimates regression models of Palestinians' views on diplomacy and attacks with 2001 public opinion data. The models suggest a modest role for economics. Views on Palestinian-Israeli economic integration and the economic impact of future peace exert important effects on views on diplomacy; income level and views on the economic consequences of Palestinian rebellion do not. Realist concerns appear to play the dominant role in views on attacks. Split-sample models reveal important interaction effects: the effects of economic incentives are substantively stronger and realist considerations sometimes weaker among people who deem economics the most important issue. All estimated models leave most of the variance unexplained.