Group Contests with Internal Conflict and Power Asymmetry
AbstractWe investigate situations in which players make costly contributions as group mem- bers in a group conflict, and at the same time engage in contest with fellow group members to appropriate the possible reward. We introduce within group power asymmetry and complementarity in members' efforts and analyze how each group's internal conflict influences its chance of winning in the external conflict. We find that the stronger player's relative contribution to external conflict is higher in a group in which the power distribution is relatively more asymmetric. Furthermore, a more conflictive group may expend more effort in external conflict if the group exhibits enough degrees of complementarity in their group effort. The relative payoff of the stronger player also depends on the degree of complementarity in collective action and it is possible for the weaker player to earn a higher payoff.
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Bibliographic InfoPaper provided by School of Economics, University of East Anglia, Norwich, UK. in its series University of East Anglia Applied and Financial Economics Working Paper Series with number 025.
Date of creation: 28 Mar 2011
Date of revision:
Postal: Helen Chapman, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- 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
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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