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Group cooperation against an incumbent

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  • Guillaume Cheikbossian

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - FRE2010 - INRA - Institut National de la Recherche Agronomique - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

In this paper, I study the ability of group members to cooperate against an incumbent in a repeated rent-seeking game and where group members and the incumbent have di¤erent valuations of the prize. I rst consider that group members use Nash Reversion Strategies (NRS) to support cooperative behavior and show that full cooperation within the group is more easily sustained as a Stationary Subgame Perfect (Nash) Equilibrium (SSPE) as either group size, or the heterogeneity in the valuation of the prize, increases. In turn, I show that full cooperation within the challenger group can also be sustained as a Weakly Renegotiation-Proof Equilibrium (WRPE). Yet, an increase in group size makes it more di¢ cult to sustain within-group cooperation but an increase in the relative valuation of the prize by group members still facilitates group cooperation.

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  • Guillaume Cheikbossian, 2019. "Group cooperation against an incumbent," Working Papers hal-02378829, HAL.
    • Handle: RePEc:hal:wpaper:hal-02378829
    Note: View the original document on HAL open archive server: https://hal.umontpellier.fr/hal-02378829
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    References listed on IDEAS

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    Keywords

    Renegotiation; Collective Action; Group Cooperation; Repeated Game; Trigger Strategies;
    All these keywords.

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