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The alliance formation puzzle and capacity constraints

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  • Konrad, Kai A.
  • Kovenock, Dan

Abstract

The formation of an alliance in conflict situations is known to suffer from a collective action problem and from the potential of internal conflict. We show that budget constraints of an intermediate size can overcome this strong disadvantage and explain the formation of alliances. -- Die Bildung von Allianzen in Konfliktsituationen induziert zwei Probleme: Partner in einer Allianz stehen vor dem Problem kollektiven Handelns, insofern ihr eigener Beitrag zum Erfolg der Allianz auch den anderen Allianzmitgliedern zu Gute kommt. Zudem entsteht innerhalb der Allianz ein Konflikt über die Aufteilung dessen, was die Allianz gewinnt. Das wirft die Frage auf, weshalb Allianzen überhaupt gebildet werden. In dieser Arbeit zeigen die Autoren, dass Budgetbeschränkungen mittlerer Größe es ermöglichen, beide Probleme zu überwinden und die Bildung von Allianzen Vorteile für alle Allianzmitglieder entstehen können. Dies liefert eine Erklärung von Allianzen in Konfliktsituationen.

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Bibliographic Info

Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Processes and Governance with number SP II 2008-07.

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Date of creation: 2008
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Handle: RePEc:zbw:wzbmpg:spii200807

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Keywords: Alliance formation puzzle; military conflict; budget constraints;

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References

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  1. Warneryd, Karl, 1998. "Distributional conflict and jurisdictional organization," Journal of Public Economics, Elsevier, vol. 69(3), pages 435-450, September.
  2. Joan Esteban & Jozsef Sakovics, 2004. "Olson vs. Coase: coalitional worth in conflict," ESE Discussion Papers 81, Edinburgh School of Economics, University of Edinburgh.
  3. Konrad, Kai A & Leininger, Wolfgang, 2007. "Self-enforcing Norms and the Efficient Non-cooperative Organization of Clans," CEPR Discussion Papers 6333, C.E.P.R. Discussion Papers.
  4. Kovenock, D. & de Vries, C.G., 1995. "The All-Pay Auction with Complete Information," UFAE and IAE Working Papers 311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Alcalde, José & Dahm, Matthias, 2008. "All-pay auction equilibria in contests," Working Papers 2072/5368, Universitat Rovira i Virgili, Department of Economics.
  6. Dan Kovenock & Brian Roberson, 2007. "Coalitional Colonel Blotto Games with Application to the Economics of Alliances," Purdue University Economics Working Papers 1207, Purdue University, Department of Economics.
  7. Harris, Christopher & Reny, Philip & Robson, Arthur, 1995. "The Existence of Subgame-Perfect Equilibrium in Continuous Games with Almost Perfect Information: A Case for Public Randomization," Econometrica, Econometric Society, vol. 63(3), pages 507-44, May.
  8. Katz, Eliakim & Tokatlidu, Julia, 1996. "Group competition for rents," European Journal of Political Economy, Elsevier, vol. 12(4), pages 599-607, December.
  9. Che, Yeon-Koo & Gale, Ian, 1997. " Rent Dissipation When Rent Seekers Are Budget Constrained," Public Choice, Springer, vol. 92(1-2), pages 109-26, July.
  10. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, 03.
  11. Michelle R. Garfinkel, 2003. "On the Stability of Group Formation: Managing the Conflict Within," Public Economics 0312005, EconWPA, revised 04 Mar 2004.
  12. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
  13. Skaperdas, Stergios, 1998. " On the Formation of Alliances in Conflict and Contests," Public Choice, Springer, vol. 96(1-2), pages 25-42, July.
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Citations

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Cited by:
  1. Kai A. Konrad, 2011. "Strategie Aspects of Fighting in Alliances," Working Papers strategie_aspects_of_figh, Max Planck Institute for Tax Law and Public Finance.
  2. Konrad, Kai A., 2010. "Dynamic contests," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-10, Social Science Research Center Berlin (WZB).
  3. Kai Konrad, 2012. "Information alliances in contests with budget limits," Public Choice, Springer, vol. 151(3), pages 679-693, June.
  4. Ke, Changxia, 2013. "Fight Alone or Together? The Need to Belong," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 421, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  5. Ke, Changxia & Konrad, Kai A. & Morath, Florian, 2013. "Brothers in arms – An experiment on the alliance puzzle," Games and Economic Behavior, Elsevier, vol. 77(1), pages 61-76.
  6. Herbst, Luisa & Konrad, Kai A. & Morath, Florian, 2013. "Endogenous group formation in experimental contests," Discussion Papers, Research Unit: Economics of Change SP II 2013-301, Social Science Research Center Berlin (WZB).
  7. Changxia Ke, 2011. "Fight Alone or Together? The Need to Belong," Working Papers fight_alone_or_together, Max Planck Institute for Tax Law and Public Finance.
  8. Herbst, Luisa & Konrad, Kai A. & Morath, Florian, 2013. "Endogenous group formation in experimental contests," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 419, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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