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Technological Determinants of the Group-Size Paradox

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  • Martin Kolmar
  • Hendrik Rommeswinkel

Abstract

The present paper analyzes situations in which groups compete for rents. A major result in the literature has been that there are both cases where larger groups have advantages and cases where they have disadvantages. The paper provides two intuitive criteria which for groups with homogenous valuations of the rent determine whether there are advantages or disadvantages for larger groups. For groups with heterogenous valuations the complementarity of group members’ efforts is shown to play a role as a further factor.

Suggested Citation

  • Martin Kolmar & Hendrik Rommeswinkel, 2011. "Technological Determinants of the Group-Size Paradox," CESifo Working Paper Series 3362, CESifo.
    • Handle: RePEc:ces:ceswps:_3362
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3362.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Konishi, Hideo & Pan, Chen-Yu, 2021. "Endogenous alliances in survival contests," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 337-358.
    2. Ricardo Nieva, 2019. "Corruption and paradoxes in alliances," Economics of Governance, Springer, vol. 20(1), pages 41-71, March.
    3. María Cubel & Santiago Sanchez-Pages, 2014. "Difference-form group contests," Working Papers 2014/6, Institut d'Economia de Barcelona (IEB).
    4. Kolmar, Martin, 2013. "Group Conflicts. Where do we stand?," Economics Working Paper Series 1331, University of St. Gallen, School of Economics and Political Science.
    5. María Cubel & Santiago Sanchez-Pages, 2014. "Difference-form group contests," Working Papers 2014/6, Institut d'Economia de Barcelona (IEB).
    6. Cubel Maria & Sanchez-Pages Santiago, 2012. "The effect of within-group inequality in a conflict against a unitary threat," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(3), pages 1-11, December.
    7. repec:bpj:pepspp:v:18:y:2012:i:3:p:11:n:14 is not listed on IDEAS

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    More about this item

    Keywords

    contests; public goods; group-size paradox;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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