Olson vs. Coase: Coalitional Worth in Conflict
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 vicinity of preferences with equal distribution of power. We conclude that the commonly made assumption of super-additive coalitional worth is suspect.Download Info
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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 3.Length:
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:bge:wpaper:3
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Related research
Keywords: Coalition formation; conflict; alliance;Other versions of this item:
- Joan Esteban, 2003. "Olson VS. Coase: Coalitional Worth in Conflict," Theory and Decision, Springer, vol. 55(4), pages 339-357, December.
- Joan Esteban & József Sákovics, 2002. "Olson vs. Coase: Coalitional worth in conflict," Economics Working Papers 645, Department of Economics and Business, Universitat Pompeu Fabra.
- Joan Esteban & Jozsef Sakovics, 2004. "Olson vs. Coase: coalitional worth in conflict," ESE Discussion Papers 81, Edinburgh School of Economics, University of Edinburgh.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
References
References listed on IDEASPlease 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.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Konrad, Kai A. & Kovenock, Dan, 2009.
"The alliance formation puzzle and capacity constraints,"
Economics Letters,
Elsevier, vol. 103(2), pages 84-86, May.
- Kai A. Konrad & Dan Kovenock, 2008. "The Alliance Formation Puzzle and Capacity Constraints," Purdue University Economics Working Papers 1209, Purdue University, Department of Economics.
- Konrad, Kai A. & Kovenock, Dan, 2008. "The alliance formation puzzle and capacity constraints," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-07, Social Science Research Center Berlin (WZB).
- Konrad, Kai A & Kovenock, Dan, 2008. "The Alliance Formation Puzzle and Capacity Constraints," CEPR Discussion Papers 6741, C.E.P.R. Discussion Papers.
- Santiago Sanchez-Pages, 2007.
"Endogenous Coalition Formation in Contests,"
ESE Discussion Papers
158, Edinburgh School of Economics, University of Edinburgh.
- Santiago Sánchez-Pagés, 2007. "Endogenous coalition formation in contests," Review of Economic Design, Springer, vol. 11(2), pages 139-163, September.
- Francis Bloch, 2009. "Endogenous formation of alliances in conflicts," Working Papers hal-00435387, HAL.
- Kai Konrad, 2012.
"Information alliances in contests with budget limits,"
Public Choice,
Springer, vol. 151(3), pages 679-693, June.
- Konrad, Kai A., 2010. "Information alliances in contests with budget limits," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-21, Social Science Research Center Berlin (WZB).
- Adam Smith & David Skarbek & Bart Wilson, 2012.
"Anarchy, groups, and conflict: an experiment on the emergence of protective associations,"
Social Choice and Welfare,
Springer, vol. 38(2), pages 325-353, February.
- Adam C. Smith & David B. Skarbek & Bart J. Wilson, 2009. "Anarchy, Groups, and Conflict: An Experiment on the Emergence of Protective Associations," Working Papers 09-03, Chapman University, Economic Science Institute.
- Konrad, Kai A., 2007. "Strategy in contests: an introduction," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, Social Science Research Center Berlin (WZB).
- Michelle R. Garfinkel & Stergios Skaperdas, 2006.
"Economics of Conflict: An Overview,"
Working Papers
050623, University of California-Irvine, Department of Economics, revised Sep 2006.
- Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, Elsevier.
- Michelle R. Garfinkel, 2003. "On the Stability of Group Formation: Managing the Conflict Within," Public Economics 0312005, EconWPA, revised 04 Mar 2004.
- Guofu Tan & Ruqu Wang, 2010. "Coalition formation in the presence of continuing conflict," International Journal of Game Theory, Springer, vol. 39(1), pages 273-299, March.
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