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Unilateral delegation and reimbursement systems in an environmental conflict

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  • Byung In Lim
  • Jason Shogren

Abstract

How unilateral delegation by a citizens' group with lower ability than a firm affects individual and total effort and the contest favourite under the two reimbursement systems are examined. A citizens' group that unilaterally hires a delegate to represent them causes the firm to increase its effort level so that it always exceeds the group's delegate - irrespective of the relative strength of the two parties. In contrast to earlier work without either delegation or reimbursement, a citizens' group that hires a delegate could now be the contest favourite; although it is more likely to occur under the asymmetric reimbursement rule.

Suggested Citation

  • Byung In Lim & Jason Shogren, 2004. "Unilateral delegation and reimbursement systems in an environmental conflict," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 489-493.
    • Handle: RePEc:taf:apeclt:v:11:y:2004:i:8:p:489-493
    DOI: 10.1080/1350485042000207252
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    References listed on IDEAS

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    1. Lambert Schoonbeek, 2002. "A delegated agent in a winner-takes-all contest," Applied Economics Letters, Taylor & Francis Journals, vol. 9(1), pages 21-23.
    2. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May.
    3. Baik Kyung Hwan & Shogren Jason F., 1994. "Environmental Conflicts with Reimbursement for Citizen Suits," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 1-20, July.
    4. Baik, Kyung Hwan, 1998. "Difference-form contest success functions and effort levels in contests," European Journal of Political Economy, Elsevier, vol. 14(4), pages 685-701, November.
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    Cited by:

    1. Sung-Hoon Park, 2022. "Contingent fees and endogenous timing in litigation contests," European Journal of Law and Economics, Springer, vol. 54(3), pages 453-473, December.
    2. Sung-Hoon Park & Chad E. Settle, 2023. "Asymmetric Reimbursement and Contingent Fees in Environmental Conflicts: Observable vs. Unobservable Contracts," Games, MDPI, vol. 14(4), pages 1-10, July.
    3. Park Sung-Hoon & Lee Sanghack, 2020. "Legal Contests with Unilateral Delegation," Asian Journal of Law and Economics, De Gruyter, vol. 11(1), pages 1-9, April.
    4. Sung-Hoon Park & Chad Settle, 2022. "Internalizing environmental damages and endogenous reimbursement in environmental conflicts: a game-theoretic analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 547-569, December.
    5. Wann-Yih Wu & Cheng-Feng Cheng, 2009. "The optimal internal marketing strategy in services under open economy," Applied Economics Letters, Taylor & Francis Journals, vol. 16(8), pages 841-845.

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