Succession Rules and Leadership Rents
AbstractLeaders compensate supporters not just for performing their duties but also in order to preempt an overthrow by the same supporters. We show how succession rules affect the power of leaders relative to supporters as well as the resources expended on possible succession struggles. We compare two regimes of leadership succession: the conclave regime and the divide-et-impera regime which differ with respect to the role of supporters of the previous leader once the new leader takes power. The leadership rent is higher and supporters receive a lower compensation in the divide-et-impera regime, as supporters have to fight harder for succession to avoid the grim outcome of loss. Leaders, then, would like to induce the divide-et-impera regime even when every supporter has veto power over his leadership.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5206.
Date of creation: Aug 2005
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- Konrad, Kai Andreas & Skaperdas, Stergios, 2005. "Succession rules and leadership rents," Discussion Papers, Research Unit: Market Processes and Governance SP II 2005-13, Social Science Research Center Berlin (WZB).
- Kai A. Konrad & Stergios Skaperdas, 2005. "Succession Rules and Leadership Rents," CESifo Working Paper Series 1534, CESifo Group Munich.
- 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
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
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