IDEAS home Printed from https://ideas.repec.org/p/lmu/muenar/22093.html
   My bibliography  Save this paper

Succession rules and leadership rents

Author

Listed:
  • Konrad, Kai A.
  • Skaperdas, Stergios

Abstract

Leaders compensate supporters not just for performing their duties but also to preempt an overthrow by the same supporters. We show how succession rules affect the power of leaders relative to supporters as well as the resources expended on possible succession struggles. We compare two regimes of leadership succession: the conclave regime and the divide-et-impera regime, which differ with respect to the role of supporters of the previous leader once the new leader takes power. The leadership rent is higher, and supporters receive a lower compensation in the divide-et-impera regime, as supporters have to fight harder for succession to avoid the grim outcome of loss. A leader, then, would like to induce the divide-et-impera regime even when every supporter has veto power over her leadership. © 2007 Sage Publications.

Suggested Citation

  • Konrad, Kai A. & Skaperdas, Stergios, 2007. "Succession rules and leadership rents," Munich Reprints in Economics 22093, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:22093
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Konrad, Kai A., 2002. "Investment in the absence of property rights; the role of incumbency advantages," European Economic Review, Elsevier, vol. 46(8), pages 1521-1537, September.
    2. Sonin, Konstantin & Egorov, Georgy, 2005. "The Killing Game: Reputation and Knowledge in Non-Democratic Succession," CEPR Discussion Papers 5092, C.E.P.R. Discussion Papers.
    3. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    4. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    5. Halvor Mehlum & Karl Moene, 2002. "Battlefields and marketplaces," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(6), pages 485-496.
    6. Bester, Helmut & Konrad, Kai A., 2004. "Delay in contests," European Economic Review, Elsevier, vol. 48(5), pages 1169-1178, October.
    7. Ernesto Dal Bo, 2000. "Bribing Voters," Economics Series Working Papers 39, University of Oxford, Department of Economics.
    8. Bueno De Mesquita, Bruce & Morrow, James D. & Siverson, Randolph M. & Smith, Alastair, 2002. "Political Institutions, Policy Choice and the Survival of Leaders," British Journal of Political Science, Cambridge University Press, vol. 32(4), pages 559-590, October.
    9. Muller, Holger M & Warneryd, Karl, 2001. "Inside versus Outside Ownership: A Political Theory of the Firm," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 527-541, Autumn.
    10. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2003. "Kleptocracy and Divide-and-Rule: A Model of Personal Rule," NBER Working Papers 10136, National Bureau of Economic Research, Inc.
    11. Szidarovszky, Ferenc & Okuguchi, Koji, 1997. "On the Existence and Uniqueness of Pure Nash Equilibrium in Rent-Seeking Games," Games and Economic Behavior, Elsevier, vol. 18(1), pages 135-140, January.
    12. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    13. Azam, Jean-Paul & Mesnard, Alice, 2003. "Civil War and the Social Contract," Public Choice, Springer, vol. 115(3-4), pages 455-475, June.
    14. Halvor Mehlum & Karl Moene, 2006. "Fighting against the odds," Economics of Governance, Springer, vol. 7(1), pages 75-87, January.
    15. Farmer, Amy & Pecorino, Paul, 1999. "Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-288, September.
    16. Baye, Michael R. & Hoppe, Heidrun C., 2003. "The strategic equivalence of rent-seeking, innovation, and patent-race games," Games and Economic Behavior, Elsevier, vol. 44(2), pages 217-226, August.
    17. Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-739, September.
    18. Garfinkel, Michelle R., 2004. "Stable alliance formation in distributional conflict," European Journal of Political Economy, Elsevier, vol. 20(4), pages 829-852, November.
    19. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2004. "Alfred Marshall Lecture: Kleptocracy and Divide-and-Rule: A Model of Personal Rule," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 162-192, 04/05.
    20. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    21. Georgy Egorov & Konstantin Sonin, 2005. "The Killing Game: Reputation and Knowledge in Politics of Succession," Game Theory and Information 0505003, University Library of Munich, Germany.
    22. Muller, Holger M & Warneryd, Karl, 2001. "Inside versus Outside Ownership: A Political Theory of the Firm," RAND Journal of Economics, The RAND Corporation, vol. 32(3), pages 527-541, Autumn.
    23. Skaperdas, Stergios & Grofman, Bernard, 1995. "Modeling Negative Campaigning," American Political Science Review, Cambridge University Press, vol. 89(1), pages 49-61, March.
    24. Jean-Paul Azam, 2002. "Looting and Conflict between Ethnoregional Groups," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 131-153, February.
    25. Fearon, James D., 1995. "Rationalist explanations for war," International Organization, Cambridge University Press, vol. 49(3), pages 379-414, July.
    26. Weingast, Barry R., 1997. "The Political Foundations of Democracy and the Rule of the Law," American Political Science Review, Cambridge University Press, vol. 91(2), pages 245-263, June.
    27. Groseclose, Tim & Snyder, James M., 2000. "Vote Buying, Supermajorities, and Flooded Coalitions," American Political Science Review, Cambridge University Press, vol. 94(3), pages 683-684, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bove, Vincenzo & Platteau, Jean-Philippe & Sekeris, Petros G., 2017. "Political repression in autocratic regimes," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 410-428.
    2. Kai Konrad & Stergios Skaperdas, 2012. "The market for protection and the origin of the state," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 417-443, June.
    3. Auriol, Emmanuelle & Platteau, Jean-Philippe, 2017. "Religious co-option in autocracy: A theory inspired by history," Journal of Development Economics, Elsevier, vol. 127(C), pages 395-412.
    4. Konrad, Kai A., 2010. "Dynamic contests," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-10, WZB Berlin Social Science Center.
    5. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    6. Thomas P. Tangerås & Nils‐Petter Lagerlöf, 2009. "Ethnic Diversity, Civil War and Redistribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 1-27, March.
    7. Stergios Skaperdas & Samarth Vaidya, 2020. "Why did pre-modern states adopt Big-God religions?," Public Choice, Springer, vol. 182(3), pages 373-394, March.
    8. S. Guriev & G. Egorov & K. Sonin, 2007. "Media Freedom, Bureaucratic Incentives, and the Resource Curse," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    9. George Tridimas, 2021. "Constitutional monarchy as power sharing," Constitutional Political Economy, Springer, vol. 32(4), pages 431-461, December.
    10. Dustin Beckett & Gregory Hess, 2008. "All in the family: why non-democratic leaders have more children," Economics of Governance, Springer, vol. 9(1), pages 65-85, January.
    11. Kai A. Konrad & Vai-Lam Mui, 2015. "The Prince – or better no prince? The Strategic Value of Appointing a Successor," Monash Economics Working Papers 15-15, Monash University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Konrad, Kai A., 2007. "Strategy in contests: an introduction [Strategie in Turnieren – eine Einführung]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, WZB Berlin Social Science Center.
    2. Kai Konrad & Wolfgang Leininger, 2011. "Self-enforcing norms and efficient non-cooperative collective action in the provision of public goods," Public Choice, Springer, vol. 146(3), pages 501-520, March.
    3. Garfinkel, Michelle R. & Skaperdas, Stergios, 2007. "Economics of Conflict: An Overview," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 22, pages 649-709, Elsevier.
    4. Jia, Hao & Skaperdas, Stergios & Vaidya, Samarth, 2013. "Contest functions: Theoretical foundations and issues in estimation," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 211-222.
    5. Stergios Skaperdas & Samarth Vaidya, 2012. "Persuasion as a contest," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 465-486, October.
    6. Stergios Skaperdas, 2003. "Restraining the Genuine Homo Economicus: Why the Economy Cannot Be Divorced from Its Governance," Economics and Politics, Wiley Blackwell, vol. 15(2), pages 135-162, July.
    7. McBride, Michael & Skaperdas, Stergios, 2014. "Conflict, settlement, and the shadow of the future," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 75-89.
    8. Pelosse, Yohan, 2009. "Mediated Contests and Strategic Foundations for Contest Success Functions," MPRA Paper 18664, University Library of Munich, Germany.
    9. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
    10. Hausken, Kjell, 2006. "Jack Hirshleifer: A Nobel Prize left unbestowed," European Journal of Political Economy, Elsevier, vol. 22(2), pages 251-276, June.
    11. Pelosse, Yohan, 2011. "Inter and intra-group conflicts as a foundation for contest success functions," MPRA Paper 31468, University Library of Munich, Germany.
    12. Kräkel, Matthias, 2006. "On the "Adverse Selection" of Organizations," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 168, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    13. Yildirim, Huseyin, 2007. "Proposal power and majority rule in multilateral bargaining with costly recognition," Journal of Economic Theory, Elsevier, vol. 136(1), pages 167-196, September.
    14. Christopher Blattman & Edward Miguel, 2010. "Civil War," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 3-57, March.
    15. Philipp Denter & Dana Sisak, 2010. ""Who's the thief?": Asymmetric Information and the Creation of Property Rights," University of St. Gallen Department of Economics working paper series 2010 2010-27, Department of Economics, University of St. Gallen.
    16. Karl Wärneryd, 2012. "Multi-player contests with asymmetric information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 277-287, October.
    17. Einy, E & Haimanko, O & Moreno, D & Sela, A & Shitovitz, B, 2013. "Tullock Contests with Asymmetric Information," Discussion Papers 2013-11, Graduate School of Economics, Hitotsubashi University.
    18. Herbst, Luisa & Konrad, Kai A. & Morath, Florian, 2017. "Balance of power and the propensity of conflict," Games and Economic Behavior, Elsevier, vol. 103(C), pages 168-184.
    19. Subhasish Chowdhury & Roman Sheremeta, 2011. "A generalized Tullock contest," Public Choice, Springer, vol. 147(3), pages 413-420, June.
    20. Mehlum, Halvor & Ove Moene, Karl, 2011. "Aggressive elites and vulnerable entrepreneurs - trust and cooperation in the shadow of conflict," Memorandum 16/2010, Oslo University, Department of Economics.

    More about this item

    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
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lmu:muenar:22093. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.