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Between-group contests over group-specific public goods with within-group fragmentation

Author

Listed:
  • Indraneel Dasgupta

    () (Indian Statistical Institute)

  • Ranajoy Guha Neogi

    (Indian Statistical Institute)

Abstract

Abstract We model a contest between two groups of equal sized populations over the division of a group-specific public good. Each group is fragmented into subgroups. Each subgroup allocates effort between production and contestation. Perfect coordination is assumed within subgroups, but subgroups cannot coordinate with one another. All subgroups choose effort allocations simultaneously. We find that the group that is more internally fragmented receives the smaller share of the public good. Aggregate rent-seeking increases when the dominant subgroups within both communities have larger population shares. Any unilateral increase in fragmentation within a group reduces conflict and increases the total income of its opponent. Strikingly, the fragmenting community itself may, however, increase its total income as well, even though its share of the public good declines. Hence, a smaller share of public good provisioning cannot be used to infer a negative income effect on the losing community.

Suggested Citation

  • Indraneel Dasgupta & Ranajoy Guha Neogi, 2018. "Between-group contests over group-specific public goods with within-group fragmentation," Public Choice, Springer, vol. 174(3), pages 315-334, March.
  • Handle: RePEc:kap:pubcho:v:174:y:2018:i:3:d:10.1007_s11127-018-0506-8
    DOI: 10.1007/s11127-018-0506-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Contest; Group-specific public good; Local public good; Ethnic conflict; Within-group fragmentation;

    JEL classification:

    • 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; Revolutions
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

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