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Leadership in Collective Action

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Abstract

We extend the model of collective action in which groups compete for a budged by endogenizing the group platform, namely the specific mixture of public/private good and the distribution of the private good to group members which can be uniform or performance-based. While the group-optimal platform contains a degree of publicness that increases in group size and divides the private benefits uniformly, a success-maximizing leader uses incentives and distorts the platform towards more private benefits - a distortion that increases with group size. In both settings we obtain the anti-Olson type result that win probability increases with group size.

Suggested Citation

  • Joan Esteban & Esther Hauk, 2008. "Leadership in Collective Action," UFAE and IAE Working Papers 756.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    • Handle: RePEc:aub:autbar:756.08
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    References listed on IDEAS

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    1. Joan Esteban & Debraj Ray, 2008. "Collective Action and the Group Size Paradox," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 379-388, Springer.
    2. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
    3. Bardhan, Pranab & Singh, Nirvikar, 2004. "Inequality, Coalitions and Collective Action," Santa Cruz Department of Economics, Working Paper Series qt1mg8p7tc, Department of Economics, UC Santa Cruz.
    4. Vincent Anesi, 2009. "Moral hazard and free riding in collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(2), pages 197-219, February.
    5. repec:feb:natura:0013 is not listed on IDEAS
    6. Devashish Mitra, 2016. "Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination," World Scientific Book Chapters, in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 1, pages 3-21, World Scientific Publishing Co. Pte. Ltd..
    7. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2005. "Cooperation in collective action," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(3), pages 473-498, July.
    8. Cornes, Richard & Sandler, Todd, 1994. "The comparative static properties of the impure public good model," Journal of Public Economics, Elsevier, vol. 54(3), pages 403-421, July.
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    Cited by:

    1. Rodriguez, Luz A. & Velez, María Alejandra & Pfaff, Alexander, 2021. "Leaders’ distributional & efficiency effects in collective responses to policy: Lab-in-field experiments with small-scale gold miners in Colombia," World Development, Elsevier, vol. 147(C).

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    More about this item

    Keywords

    collective contests; leadership; group platform; incentives; sharing rules;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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