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Preemption contests between groups

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Listed:
  • Stefano Barbieri
  • Kai A. Konrad
  • David A. Malueg

Abstract

We consider a preemption game between competing groups; firms lobbying individually for their groups' interests provide an empirical example. Among symmetric groups, the first firm to take action bears an (unobserved) cost and wins the prize on behalf of its group. In equilibrium, the firm with the lowest cost takes action, but with delay. More competition and a smaller ratio of costs to benefits reduce delay. Firms in larger groups wait longer, but group action can occur earlier, as the probability of a low‐cost firm is higher. Asymmetries in group size or strength of externalities also matter.

Suggested Citation

  • Stefano Barbieri & Kai A. Konrad & David A. Malueg, 2020. "Preemption contests between groups," RAND Journal of Economics, RAND Corporation, vol. 51(3), pages 934-961, September.
    • Handle: RePEc:bla:randje:v:51:y:2020:i:3:p:934-961
    DOI: 10.1111/1756-2171.12345
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    Cited by:

    1. Konrad, Kai A. & Morath, Florian, 2020. "The Volunteer’s Dilemma in Finite Populations," CEPR Discussion Papers 15536, C.E.P.R. Discussion Papers.
    2. Stefano Barbieri & Kai A. Konrad, 2021. "Overzealous Rule Makers," Journal of Law and Economics, University of Chicago Press, vol. 64(2), pages 341-365.
    3. Yixuan Shi, 2022. "Dynamic Volunteer's Dilemma with Procrastinators," Working Papers tax-mpg-rps-2022-17, Max Planck Institute for Tax Law and Public Finance.
    4. Kai A. Konrad & Florian Morath, 2021. "The volunteer’s dilemma in finite populations," Journal of Evolutionary Economics, Springer, vol. 31(4), pages 1277-1290, September.
    5. Qiang Fu & Jingfeng Lu, 2020. "On Equilibrium Player Ordering In Dynamic Team Contests," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1830-1844, October.
    6. Konrad, Kai A., 2024. "The collective security dilemma of preemptive strikes," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1191-1199.

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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