The effect of within-group inequality in a conflict against a unitary threat
A group of agents must defend their individual income from an external threat by pooling their efforts against it. The winner of this confrontation is determined by a contest success function where members’ efforts may display different degrees of complementarity. Individual effort is costly and follows a convex isoelastic function. We investigate how the success of the group in the conflict and its members’ utilities vary with the degree of within-group inequality. We show that there is a natural relationship between the group’s probability of victory and the Atkinson index of inequality. If members’ efforts are complementary or the cost function convex enough, more egalitarianism within the group increases the likelihood of victory against the external threat. The opposite holds when members’ efforts are substitutes and the cost linear enough. Finally, we obtain conditions under which richer members of the group are willing to make transfers to poorer members in order to enhance their final payoff.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Carrer del Tinent Coronel Valenzuela 1-11, 08034 Barcelona|
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Cornes, 1993. "Dyke Maintenance and Other Stories: Some Neglected Types of Public Goods," The Quarterly Journal of Economics, Oxford University Press, vol. 108(1), pages 259-271.
- Joan-Maria Esteban & Debraj Ray, 2005.
"A Model of Ethnic Conflict,"
253, Barcelona Graduate School of Economics.
- Joan Esteban & Debraj Ray, 2007. "A Model of Ethnic Conflict," Working Papers 313, Barcelona Graduate School of Economics.
- Joan Esteban & Debraj Ray, 2007. "A Model of Ethnic Conflict," UFAE and IAE Working Papers 701.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
- Sekeris Petros, 2011. "Land Inequality and Conflict in Sub-Saharan Africa," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-18, January.
- Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
- Martin Kolmar & Hendrik Rommeswinkel, 2011. "Technological Determinants of the Group-Size Paradox," CESifo Working Paper Series 3362, CESifo Group Munich.
- Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
- Debraj Ray & Jean-Marie Baland & Olivier Dagnelie, 2007.
"Inequality and Inefficiency in Joint Projects,"
- Carmen Beviá & Luis C. Corchón, 2008.
"Peace Agreements Without Commitment,"
340, Barcelona Graduate School of Economics.
- Jack Hirshleifer, 1991. "The Paradox Of Power," Economics and Politics, Wiley Blackwell, vol. 3(3), pages 177-200, November.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, October.
- Johannes Münster, 2009. "Group contest success functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(2), pages 345-357, November.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2012/6/doc2012-26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.