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How to win a decision in a confederation

Author

Listed:
  • JEHIEL, Philippe
  • THISSE, Jacques-François

Abstract

This paper deals with collective decision making within a group of independent states. The right to choose the public policy is delegated from the central authority to one of the states through a bidding procedure among the group state members. We identify the following tradeoff: competition among states yields higher transfers to the central authority, but the outcome tends to be less efficient than what it is when states negotiate prior to the decision making process. We extend and illustrate the model by means of a public good game involving several heterogeneous states.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • JEHIEL, Philippe & THISSE, Jacques-François, 2005. "How to win a decision in a confederation," LIDAM Reprints CORE 1781, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:1781
    DOI: 10.1016/j.jpubeco.2003.04.001
    Note: In : Journal of Public Economics, 89, 1191-1210, 2005
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    Cited by:

    1. Klaus Abbink & Jordi Brandts, 2016. "Political autonomy and independence: Theory and experimental evidence," Journal of Theoretical Politics, , vol. 28(3), pages 461-496, July.
    2. Helmut Bester, 2009. "Externalities, communication and the allocation of decision rights," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(2), pages 269-296, November.

    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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