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Group Size, Collective Action and Complementarities in Efforts

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  • Cheikbossian, Guillaume
  • Fayat, Romain

Abstract

We revisit the group size paradox in a model where two groups of different sizes compete for a prize exhibiting a varying degree of rivalry and where group effort is given by a CES function of individual e¤orts. We show that the larger group can be more successful than the smaller group if the degree of complementarity is sufficiently high relative to the degree of rivalry of the prize.

Suggested Citation

  • Cheikbossian, Guillaume & Fayat, Romain, 2018. "Group Size, Collective Action and Complementarities in Efforts," TSE Working Papers 18-918, Toulouse School of Economics (TSE).
  • Handle: RePEc:tse:wpaper:32635
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    References listed on IDEAS

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    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Chowdhury, Subhasish M. & Lee, Dongryul & Sheremeta, Roman M., 2013. "Top guns may not fire: Best-shot group contests with group-specific public good prizes," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 94-103.
    3. Cornes, Richard & Hartley, Roger, 2007. "Weak links, good shots and other public good games: Building on BBV," Journal of Public Economics, Elsevier, vol. 91(9), pages 1684-1707, September.
    4. Debraj Ray & Jean-Marie Baland & Olivier Dagnelie, 2007. "Inequality and Inefficiency in Joint Projects," Economic Journal, Royal Economic Society, vol. 117(522), pages 922-935, July.
    5. Kolmar, Martin & Rommeswinkel, Hendrik, 2013. "Contests with group-specific public goods and complementarities in efforts," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 9-22.
    6. Katz, Eliakim & Nitzan, Shmuel & Rosenberg, Jacob, 1990. "Rent-Seeking for Pure Public Goods," Public Choice, Springer, vol. 65(1), pages 49-60, April.
    7. repec:cup:apsrev:v:95:y:2001:i:03:p:663-672_00 is not listed on IDEAS
    8. Lee, Dongryul, 2012. "Weakest-link contests with group-specific public good prizes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 238-248.
    9. Esteban, Joan & Ray, Debraj, 2001. "Collective Action and the Group Size Paradox," American Political Science Review, Cambridge University Press, vol. 95(03), pages 663-672, September.
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    Cited by:

    1. Nöldeke, Georg & Peña, Jorge, 2018. "Group size effects in social evolution," IAST Working Papers 18-75, Institute for Advanced Study in Toulouse (IAST).

    More about this item

    Keywords

    group size paradox; group contest; complementarity; (impure) public good;

    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

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