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The Prince – or better no prince? The Strategic Value of Appointing a Successor

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  • Kai A. Konrad
  • Vai-Lam Mui

Abstract

Appointing a successor (the “prince”) allows the ruler (the “king”) to alter the structures of conflicts that take place between him and his potential challengers, as well as the structures of conflicts that take place among his potential challengers. Motivated by historical examples and using an infinite horizon rulership competition game, we show that while an appointed prince constitutes a powerful and dangerous threat to the incumbent ruler (the elevated threat effect), the appointed prince can also offer the incumbent ruler increased protection against other potential challengers (the barrier effect). We determine conditions when the overall effect of appointing a successor benefits the incumbent ruler and enables him to acquire a larger share of the governance rent in equilibrium.

Suggested Citation

  • Kai A. Konrad & Vai-Lam Mui, 2015. "The Prince – or better no prince? The Strategic Value of Appointing a Successor," Monash Economics Working Papers 15-15, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2015-15
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2015/1515theprincekonradmui.pdf
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    References listed on IDEAS

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    Cited by:

    1. Auriol, Emmanuelle & Platteau, Jean-Philippe, 2017. "Religious co-option in autocracy: A theory inspired by history," Journal of Development Economics, Elsevier, vol. 127(C), pages 395-412.

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    More about this item

    Keywords

    Coup; ruler; governance rent; successorship regimes;
    All these keywords.

    JEL classification:

    • 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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