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A model of strategic delegation in contests between groups

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  • Stefan Brandauer
  • Florian Englmaier

    ()

Abstract

We analyze a contest between two groups where group members have differing valuations for the contested rent. Generically the pivotal group member with the median valuation of the rent will not act himself but will want to send a group member that has preferences different to her own into the contest. The delegation can be either to more or less 'radical' group members. The direction of delegation depends on the order of moves and the relative 'aggressiveness' of the group medians. We show that almost certainly very asymmetric equilibria arise, even if the median group members value the rent (almost) equally. Delegation can lead to a social improvement in terms of resources spent in the contest.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Review of Economic Design.

Volume (Year): 13 (2009)
Issue (Month): 3 (September)
Pages: 205-232

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Handle: RePEc:spr:reecde:v:13:y:2009:i:3:p:205-232

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Web page: http://link.springer.de/link/service/journals/10058/index.htm

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Related research

Keywords: Strategic delegation; Contests; Rent seeking; Political economy; Arms races; Distributional conflict; D72; D73; D4; P16;

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References

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  1. Baik, Kyung H & Shogren, Jason F, 1992. "Strategic Behavior in Contests: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 359-62, March.
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Citations

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Cited by:
  1. Koessler, Frédéric & Forges, Françoise, 2008. "Long persuasion games," Economics Papers from University Paris Dauphine 123456789/179, Paris Dauphine University.
  2. Heijdra, B.J. & Ligthart, J.E., 2006. "The Transitional Dynamics of Fiscal Policy in Small Open Economies," Open Access publications from Tilburg University urn:nbn:nl:ui:12-199394, Tilburg University.
  3. Jennings, Colin, 2008. "Intra-Group Competition and Inter-Group Conflict: An Application to Northern Ireland," SIRE Discussion Papers 2008-30, Scottish Institute for Research in Economics (SIRE).

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