Mehlum, Halvor and Moene, Kalle (2008): King of the Hill Positional Dynamics in Contests.
Download (340Kb) | Preview
In a contest with positional dynamics between an incumbent and a challenger i) inequality of power may magnify conflicts, ii) more severe conflicts can go together with lower turnover of incumbents, and iii) power can be self defeating as cost advantages can reduce pay-offs. These three propositions of our paper are contrary to the implications of static conflict models. They follow from incorporating positional dynamics into the standard static approach. Such positional dynamics are relevant for competition in battlefields, politics, and market places.
|Item Type:||MPRA Paper|
|Original Title:||King of the Hill Positional Dynamics in Contests|
|Keywords:||Contests;political stability;war;incumbency advantage|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict; Conflict Resolution; Alliances
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
|Depositing User:||Halvor Mehlum|
|Date Deposited:||04. Apr 2008 06:02|
|Last Modified:||14. Feb 2013 00:27|
Acemoglu, Daron and James A. Robinson (2001) “A Theory of Political Transition” The American Economic Review, 91(4), pp. 938-963. Acemoglu, Daron and James A. Robinson (2006) Persistence of Power, Elites and Institutions, NBER workingpaper No. 12108. Clark, Derek J. and Christian Riis (1998) “Competition over More Than One Prize” American Economic Review 88(1), pp. 276-89. Dante Alighieri (2000) The Divine Comedy, Available from http://www.italianstudies.org/comedy/index.htm. Esteban, Joan and Debraj Ray (1999) “Conflict and Distribution” Journal of Economic Theory 87, pp. 379-415. Grossman, Herschel I. (1994) “Production, appropriation, and land reform” American Economic Review, 84 No. 3. 705–712. Haavelmo, Trygve (1954) A study in the theory of economic evolution, North- Holland, Amsterdam. Hirshleifer Jack. (1991) “The paradox of Power” Economics and Politics 4, pp. 177-200. Konrad, Kai A. and Stergios Skaperdas (1998) “Extortion” Economica, 65, pp. 461- 477. Nitzan, Shmuel (1994) “Modelling Rent-Seeking Contests” European Journal of Political Economy 10(1), pp. 41-60. Przeworski, Adam et al. (1990) Democracy and Development- Political Institutions and Well-Being in the World, 1950-1990, Cambridge University Press, Cambridge. 19 Rogerson, William P. (1982) “The Social Costs of Monopoly and Regulation: A Game-Theoretic Analysis” The Bell Journal of Economics Vol. 13, No. 2, pp. 391-401 Skaperdas, Stergios, (1996) “Contest success functions” Economic Theory 7, pp. 283-290. Skaperdas, Stergios and Constantinos Syropoulos (1996) ’Can the Shadow of the Future Harm Cooperation?’, Journal of Economic Behavior and Organization, 29(3), 355-372. Tullock, Gordon (1980) “Efficient Rent Seeking” in J. Buchanan R Tollison and G. Tullock, eds. Toward a Theory of Rent Seeking Society. Texas A&M University Press, pp. 97-112