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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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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2006/wp-cesifo-2006-01/cesifo1_wp1654.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1654.

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

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

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References

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  1. Colin Jennings & Alan Hamlin, 2004. "Leadership and Conflict," Economics Series Working Papers 200, University of Oxford, Department of Economics.
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Cited by:
  1. Francoise Forges & Frédéric Koessler, 2006. "Long Persuasion Games," CESifo Working Paper Series 1669, CESifo Group Munich.
  2. 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.
  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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