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A General Equilibrium Model of Two Group Conflict with Endogenous Intra-group Sharing Rules

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  • Noh, Suk Jae

Abstract

This paper explores the interactions among intragroup sharing rules, the competition between two groups over the common pool of output, and the allocation of resources between productive and appropriate activities. In the interior solution, the use of egalitarian method for the distribution of group income among members plays no distributional role but only affects the allocation of resources. It releases resources into the productive sector from the group that adopts the egalitarian rule by making the internal conflict among the members less intense. The sequential choice of intragroup sharing rules and resource allocations produce the adoption of fully egalitarian intragroup sharing rules in both groups. These rules minimize the amount of resources allocated to appropriate activities and maximize the welfare level of all individuals in the economy. This result suggests that intergroup competition with the use of egalitarian principle in the distribution of group income among group members, which is not available to the Hobbesian state of nature, is one of the cheaper social devices in restraining individuals from engaging in costly appropriative activities. Copyright 1999 by Kluwer Academic Publishers

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  • Noh, Suk Jae, 1999. "A General Equilibrium Model of Two Group Conflict with Endogenous Intra-group Sharing Rules," Public Choice, Springer, vol. 98(3-4), pages 251-267, March.
    • Handle: RePEc:kap:pubcho:v:98:y:1999:i:3-4:p:251-67
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    Cited by:

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    3. Hassani-Mahmooei, Behrooz & Parris, Brett W., 2013. "Resource scarcity, effort allocation and environmental security: An agent-based theoretical approach," Economic Modelling, Elsevier, vol. 30(C), pages 183-192.
    4. Tverskoi, Denis & Senthilnathan, Athmanathan & Gavrilets, Sergey, 2021. "The dynamics of cooperation, power, and inequality in a group-structured society," SocArXiv 24svr, Center for Open Science.
    5. Dhritiman Gupta, 2023. "Prize sharing rules in collective contests: when do social norms matter?," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 221-244, February.
    6. Hikaru Ogawa, 2005. "The Distribution of Household Income in Marriage," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 261-275, September.
    7. Siqueira, Kevin, 2003. "Participation in organized and unorganized protests and rebellions," European Journal of Political Economy, Elsevier, vol. 19(4), pages 861-874, November.
    8. Raul Caruso, 2006. "A Trade Institution as a Peaceful Institution? A Contribution to Integrative Theory," Conflict Management and Peace Science, Peace Science Society (International), vol. 23(1), pages 53-72, February.
    9. Noh, Suk Jae, 2002. "Resource distribution and stable alliances with endogenous sharing rules," European Journal of Political Economy, Elsevier, vol. 18(1), pages 129-151, March.
    10. repec:elg:eechap:15325_6 is not listed on IDEAS
    11. Pau Balart & Sabine Flamand & Oliver Gürtler & Orestis Troumpounis, 2018. "Sequential choice of sharing rules in collective contests," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(5), pages 703-724, October.
    12. Changxia Ke, 2011. "Fight Alone or Together? The Need to Belong," Working Papers fight_alone_or_together, Max Planck Institute for Tax Law and Public Finance.
    13. Jean-Paul Azam, 2006. "The Paradox of Power Reconsidered: A Theory of Political Regimes in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 15(1), pages 26-58, March.
    14. Azam, Jean-Paul & Mesnard, Alice, 2003. "Civil War and the Social Contract," Public Choice, Springer, vol. 115(3-4), pages 455-475, June.
    15. Raul Caruso, 2012. "Differentials in property Rights in a two-sector economy," Revue d'économie politique, Dalloz, vol. 122(2), pages 257-278.
    16. Dhritiman Gupta, 2020. "Prize Sharing Rules in Collective Contests: Towards Strategic Foundations," Discussion Papers 20-01, Indian Statistical Institute, Delhi.
    17. Kjell Hausken, 2006. "The Stability Of Anarchy And Breakdown Of Production," Defence and Peace Economics, Taylor & Francis Journals, vol. 17(6), pages 589-603.
    18. Pau Balart & Sabine Flamand & Orestis Troumpounis, 2014. "Strategic choice of sharing rules in collective contests," Working Papers 64402108, Lancaster University Management School, Economics Department.
    19. Caruso Raul, 2011. "On the Nature of Peace Economics," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 16(2), pages 1-13, January.
    20. Raul Caruso, 2010. "Butter, Guns And Ice-Cream Theory And Evidence From Sub-Saharan Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(3), pages 269-283.
    21. 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.
    22. Dhritiman Gupta, 2020. "Prize sharing rules in collective contests: When does group size matter?," Discussion Papers 20-04, Indian Statistical Institute, Delhi.
    23. Yang-Ming Chang & Zijun Luo, 2015. "Endogenous division rules as a family constitution: strategic altruistic transfers and sibling competition," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(1), pages 173-194, January.
    24. Choi Gyoung-Gyu, 2020. "Guns and Butter: Stability and Robustness," Asian Journal of Law and Economics, De Gruyter, vol. 11(1), pages 1-8, April.

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