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Collective contests for commons and club goods

  • Nitzan, Shmuel
  • Ueda, Kaoru

This paper focuses on collective contests for commons and club goods. Our main objective is to examine in this context the effect of group size on its performance. The main results specify conditions for the existence (non-existence) of the group-size paradox, namely, the situation where a larger group is less (more) effective in pursuing its interest because of (despite) the combined effect of the incentives that result in the free-riding problem and the tragedy of the commons. The paper also explains under what circumstances there exists a bias towards excessive or inadequate winning group size. Finally, it examines the effect of restricted excludability of the commons good within the winning group on the relationship between group-size and its winning probability.

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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 1-2 (February)
Pages: 48-55

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:1-2:p:48-55
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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  1. Roger Hartley & Richard Cornes, 2003. "Aggregative Public Good Games," Keele Economics Research Papers KERP 2003/05, Centre for Economic Research, Keele University.
  2. Cornes, Richard & Sandler, Todd, 1983. "On Commons and Tragedies," American Economic Review, American Economic Association, vol. 73(4), pages 787-92, September.
  3. Konrad, Kai A., 2003. "Bidding in hierarchies
    [Das Bieten in Hierarchien]
    ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-27, Social Science Research Center Berlin (WZB).
  4. Baik, Kyung Hwan & Lee, Sanghack, 2001. "Strategic Groups and Rent Dissipation," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 672-84, October.
  5. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
  6. Kaoru Ueda, 2002. "Oligopolization in collective rent-seeking," Social Choice and Welfare, Springer, vol. 19(3), pages 613-626.
  7. Hoel, Alf Håkon & Kvalvik, Ingrid, 2006. "The allocation of scarce natural resources: The case of fisheries," Marine Policy, Elsevier, vol. 30(4), pages 347-356, July.
  8. Nitzan, Shmuel, 1991. "Collective Rent Dissipation," Economic Journal, Royal Economic Society, vol. 101(409), pages 1522-34, November.
  9. Baik, Kyung Hwan & Kim, In-Gyu & Na, Sunghyun, 2001. "Bidding for a group-specific public-good prize," Journal of Public Economics, Elsevier, vol. 82(3), pages 415-429, December.
  10. repec:cup:cbooks:9780521384414 is not listed on IDEAS
  11. Kyung Hwan Baik, 1994. "Winner-Help-Loser Group Formation In Rent-Seeking Contests," Economics and Politics, Wiley Blackwell, vol. 6(2), pages 147-162, 07.
  12. Warneryd, Karl, 1998. "Distributional conflict and jurisdictional organization," Journal of Public Economics, Elsevier, vol. 69(3), pages 435-450, September.
  13. Katz, Eliakim & Tokatlidu, Julia, 1996. "Group competition for rents," European Journal of Political Economy, Elsevier, vol. 12(4), pages 599-607, December.
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