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Olson VS. Coase: Coalitional Worth in Conflict

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Author Info
Joan Esteban ()

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Abstract

We analyze a model of conflict with endogenous choice of effort, where subsets of the contenders may force the resolution to be sequential: First the alliance fights it out with the rest and -- in case they win -- later they fight it out among themselves. For three-player games, we find that it will not be in the interest of any two of them to form an alliance. We obtain this result under two different scenarios: equidistant preferences with varying relative strengths, and varying vicinity of preferences with equal distribution of power. We conclude that the commonly made assumption of super-additive coalitional worth is suspect.

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Article provided by Springer in its journal Theory and Decision.

Volume (Year): 55 (2003)
Issue (Month): 4 (December)
Pages: 339-357
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Handle: RePEc:kap:theord:v:55:y:2003:i:4:p:339-357

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ray, Debraj & Vohra, Rajiv, 1999. "A Theory of Endogenous Coalition Structures," Games and Economic Behavior, Elsevier, vol. 26(2), pages 286-336, January. [Downloadable!] (restricted)
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  2. Garfinkel, Michelle R., 2004. "Stable alliance formation in distributional conflict," European Journal of Political Economy, Elsevier, vol. 20(4), pages 829-852, November. [Downloadable!] (restricted)
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  3. Esteban, J. & Sakovics, J., 2000. "Temporary Alliance Formation: Endogenous Sequencing in Conflict Games," Papers 43, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
  4. Francis Bloch & Santiago S?chez-Pag? & Raphael Soubeyran, . "When does universal peace prevail? Secession and group formation in rent seeking contests and policy conflD72icts," UFAE and IAE Working Papers 543.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  5. Greenberg, Joseph, 1994. "Coalition structures," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 37, pages 1305-1337 Elsevier. [Downloadable!] (restricted)
  6. Baik, Kyung Hwan & Lee, Sanghack, 2001. "Strategic Groups and Rent Dissipation," Economic Inquiry, Oxford University Press, vol. 39(4), pages 672-84, October.
  7. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August. [Downloadable!] (restricted)
  8. Noh, Suk Jae, 2002. "Resource distribution and stable alliances with endogenous sharing rules," European Journal of Political Economy, Elsevier, vol. 18(1), pages 129-151, March. [Downloadable!] (restricted)
  9. Skaperdas, Stergios, 1998. " On the Formation of Alliances in Conflict and Contests," Public Choice, Springer, vol. 96(1-2), pages 25-42, July. [Downloadable!] (restricted)
  10. Ray, Debraj & Vohra, Rajiv, 1997. "Equilibrium Binding Agreements," Journal of Economic Theory, Elsevier, vol. 73(1), pages 30-78, March. [Downloadable!] (restricted)
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  11. Guofu Tan & Ruqu Wang, 1997. "Endogenous Coalition Formation in Rivalry," Working Papers 956, Queen's University, Department of Economics. [Downloadable!]
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Cited by:
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  1. Kai A. Konrad & Dan Kovenock, 2008. "The Alliance Formation Puzzle and Capacity Constraints," Purdue University Economics Working Papers 1209, Purdue University, Department of Economics. [Downloadable!]
    Other versions:
  2. Michelle R. Garfinkel, 2003. "On the Stability of Group Formation: Managing the Conflict Within," Public Economics 0312005, EconWPA, revised 04 Mar 2004. [Downloadable!]
  3. Santiago Sanchez-Pages, 2007. "Endogenous Coalition Formation in Contests," ESE Discussion Papers 158, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
    Other versions:
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