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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.

Suggested Citation

  • Stefan Brandauer & Florian Englmaier, 2006. "A Model of Strategic Delegation in Contests between Groups," CESifo Working Paper Series 1654, CESifo.
    • Handle: RePEc:ces:ceswps:_1654
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    Cited by:

    1. Park Sung-Hoon & Lee Sanghack, 2019. "How Do Risk-Averse Litigants Set Contingent Fees for Risk-Neutral Lawyers?," Review of Law & Economics, De Gruyter, vol. 15(2), pages 1-19, July.
    2. Colin Jennings, 2011. "Intra-Group Competition And Inter-Group Conflict: An Application To Northern Ireland," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(1), pages 63-83.
    3. Ryvkin, Dmitry, 2011. "The optimal sorting of players in contests between groups," Games and Economic Behavior, Elsevier, vol. 73(2), pages 564-572.
    4. Heijdra, Ben J. & Ligthart, Jenny E., 2010. "The Transitional Dynamics Of Fiscal Policy In Small Open Economies," Macroeconomic Dynamics, Cambridge University Press, vol. 14(1), pages 1-28, February.
    5. repec:dau:papers:123456789/179 is not listed on IDEAS

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    More about this item

    Keywords

    strategic delegation; contests; rent seeking; political economy; arms races; distributional conflict;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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