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Bipartite conflict networks with returns to scale technology

Author

Listed:
  • Jiao, Qian
  • Shen, Bo
  • Sun, Xiang

Abstract

This paper considers a complete bipartite conflict network model with returns to scale technology. We show that the impact of the returns to scale technology on agents’ equilibrium behaviors can be determined by two important factors: the size ratio of two coalitions and the degree of local interdependencies of conflicts. We find an inverted U relationship between the returns to scale technology and (individual and total) equilibrium efforts when two coalitions differ sufficiently in size and the degree of local interdependencies of conflicts is high. Our finding suggests that an increase in the returns to scale technology can be beneficial in the sense that it reduces conflict intensity.

Suggested Citation

  • Jiao, Qian & Shen, Bo & Sun, Xiang, 2019. "Bipartite conflict networks with returns to scale technology," Journal of Economic Behavior & Organization, Elsevier, vol. 163(C), pages 516-531.
  • Handle: RePEc:eee:jeborg:v:163:y:2019:i:c:p:516-531
    DOI: 10.1016/j.jebo.2019.05.001
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    More about this item

    Keywords

    Conflict network games; Local interdependency; Returns to scale technology; Tullock contest;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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