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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.

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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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Citations

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Cited by:
  1. 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).
  2. Francoise Forges & Frédéric Koessler, 2006. "Long Persuasion Games," CESifo Working Paper Series 1669, CESifo Group Munich.
  3. Heijdra, Ben J. & Ligthart, Jenny E., 2010. "The Transitional Dynamics Of Fiscal Policy In Small Open Economies," Macroeconomic Dynamics, Cambridge University Press, vol. 14(01), pages 1-28, February.
  4. Forges, Françoise, 2005. "The ex ante incentive compatible core of an exchange economy with and without indivisibilities," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/167, Université Paris-Dauphine.

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