I know of two by the same author that should be read together. The first gives a great overview of Israeli politics considering how they relate to the conflict it is Politics and Government in Israel... by. Greg S. Mahler http://www.amazon.com/Politics-Government-Israel-Maturation-Modern/dp/0742568288/ref=ntt_at_ep_dpt_2
The second is a book of primary documents relating to Israel's founding and the peace process: Ed. Greg S. Mahler
http://www.amazon.com/Politics-Government-Israel-Maturation-Modern/dp/0742568288/ref=ntt_at_ep_dpt_2
I took classes with Greg while in college and read both they are excellent very balanced view. Greg himself started his career as an American Zionist; lived in Israel and interviewed a lot of the first Knesset for his doctoral dissertation. His views on the situation with Palestine have evolved over time and he is now more sympathetic to the Palestinian cause. This however, allows him to view the situation from both sides.