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Group-contests with endogenous claims

Author

Listed:
  • DANIEL CARDONA

    () (Universitat de les Illes Balears)

  • ANTONI RUBÍ-BARCELÓ

    () (Universitat de les Illes Balears)

Abstract

Before group members individually decide their efforts in a contest to set a policy, groups are allowed to make some concessions to their opponent by choosing a less controversial policy to lobby for. When valuations over the set of policies follow a linear function, we show that concessions are never profitable when the success function is homogeneous of degree zero but they are when it is of difference form. Surprisingly, concessions might be detrimental for the members of the group that does not make them. Comparing this situation with another where efforts are decided collectively at a group level allows us to remark the effect of positive externalities of effort as the key cause of this damage.

Suggested Citation

  • Daniel Cardona & Antoni Rubí-Barceló, 2015. "Group-contests with endogenous claims," DEA Working Papers 70, Universitat de les Illes Balears, Departament d'Economía Aplicada.
  • Handle: RePEc:ubi:deawps:70
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    References listed on IDEAS

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    Cited by:

    1. Daniel Cardona & Jenny De Freitas & Antoni Rubí-Barceló, 2018. "Polarization or Moderation? Intra-group heterogeneity in endogenous-policy contest," DEA Working Papers 87, Universitat de les Illes Balears, Departament d'Economía Aplicada.

    More about this item

    Keywords

    Group contests; endogenous claims; conflict; rent-seeking;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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