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A Model of Strategic Delegation in Contests between Groups

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Author Info
Stefan Brandauer ()
Florian Englmaier ()

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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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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1654.

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Date of creation: 2006
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Handle: RePEc:ces:ceswps:_1654

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Related research
Keywords: strategic delegation; contests; rent seeking; political economy; arms races; distributional conflict;

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Find related papers by JEL classification:
D40 - Microeconomics - - Market Structure and Pricing - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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References listed on IDEAS
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    Other versions:
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  13. Dijkstra, Bouwe R., 1998. "Cooperation by way of support in a rent seeking contest for a public good," European Journal of Political Economy, Elsevier, vol. 14(4), pages 703-725, November. [Downloadable!] (restricted)
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  22. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, 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. Colin Jennings, 2008. "Intra-Group Competition and Inter-Group Conflict: An Application to Northern Ireland," Working Papers 08-09, University of Strathclyde Business School, Department of Economics, revised Jul 2008. [Downloadable!]
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