IDEAS home Printed from https://ideas.repec.org/p/pur/prukra/1352.html
   My bibliography  Save this paper

The Political Hare and the Stag Hunt

Author

Listed:
  • Yaroslav Rosokha
  • Xinxin Lyu
  • Denis Tverskoi
  • Sergey Gavrilets

Abstract

We theoretically and experimentally study an indefinite dynamic game intended to capture two main aspects of the political process – elections in which opposing factions compete by spending resources and policy-making in which those same factions are required to cooperate for the successful legislature. The main theoretical result is that limits on spending in the election contest increase cooperation. On the experimental side, we first test and confirm theoretical predictions and then explore whether such limits could arise endogenously. We find that a majority of subjects are successful in establishing a consensus on low limits, leading to higher cooperation and welfare.

Suggested Citation

  • Yaroslav Rosokha & Xinxin Lyu & Denis Tverskoi & Sergey Gavrilets, 2024. "The Political Hare and the Stag Hunt," Purdue University Economics Working Papers 1352, Purdue University, Department of Economics.
    • Handle: RePEc:pur:prukra:1352
    as

    Download full text from publisher

    File URL: https://business.purdue.edu/research/working-papers-series/2024/1352.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kurtis Swope, 2002. "An Experimental Investigation of Excludable Public Goods," Experimental Economics, Springer;Economic Science Association, vol. 5(3), pages 209-222, December.
    2. Stoddard, Brock & Walker, James M. & Williams, Arlington, 2014. "Allocating a voluntarily provided common-property resource: An experimental examination," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 141-155.
    3. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
    4. Crawford, Sue E. S. & Ostrom, Elinor, 1995. "A Grammar of Institutions," American Political Science Review, Cambridge University Press, vol. 89(3), pages 582-600, September.
    5. Astrid Dannenberg & Carlo Gallier, 2020. "The choice of institutions to solve cooperation problems: a survey of experimental research," Experimental Economics, Springer;Economic Science Association, vol. 23(3), pages 716-749, September.
    6. Hopkins, Ed, 1999. "A Note on Best Response Dynamics," Games and Economic Behavior, Elsevier, vol. 29(1-2), pages 138-150, October.
    7. Ertan, Arhan & Page, Talbot & Putterman, Louis, 2009. "Who to punish? Individual decisions and majority rule in mitigating the free rider problem," European Economic Review, Elsevier, vol. 53(5), pages 495-511, July.
    8. Cadigan, John & Wayland, Patrick T. & Schmitt, Pamela & Swope, Kurtis, 2011. "An experimental dynamic public goods game with carryover," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 523-531.
    9. Emanuel Vespa, 2020. "An Experimental Investigation Of Cooperation In The Dynamic Common Pool Game," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(1), pages 417-440, February.
    10. Merkel, Anna & Vanberg, Christoph, 2023. "Multilateral bargaining with subjective claims under majority vs. unanimity rule: An experiment," Journal of Economic Psychology, Elsevier, vol. 95(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grieco, Daniela & Faillo, Marco & Zarri, Luca, 2017. "Enforcing cooperation in public goods games: Is one punisher enough?," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 55-73.
    2. Detemple, Julian & Kosfeld, Michael, 2023. "Fairness and Inequality in Institution Formation," IZA Discussion Papers 16464, Institute of Labor Economics (IZA).
    3. Dal Bó, Pedro & Foster, Andrew & Kamei, Kenju, 2024. "The democracy effect: A weights-based estimation strategy," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 31-45.
    4. Ramón Cobo-Reyes & Gabriel Katz & Thomas Markussen & Simone Meraglia, 2022. "Voting on sanctioning institutions in open and closed communities: experimental evidence," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 619-677, April.
    5. Cox, Caleb A., 2015. "Cursed beliefs with common-value public goods," Journal of Public Economics, Elsevier, vol. 121(C), pages 52-65.
    6. Bühren, Christoph & Dannenberg, Astrid, 2021. "The demand for punishment to promote cooperation among like-minded people," European Economic Review, Elsevier, vol. 138(C).
    7. Alt, Marius, 2024. "Better us later than me now —," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    8. Nhim, Tum & Schuch, Esther & Richter, Andries, 2023. "Water scarcity and support for costly institutions in public goods: Experimental evidence from Cambodia," Ecological Economics, Elsevier, vol. 212(C).
    9. Bühren, Christoph & Dannenberg, Astrid, 2021. "The Demand for Punishment to Promote Cooperation Among Like-Minded People," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242427, Verein für Socialpolitik / German Economic Association.
    10. Christoph Buehren & Astrid Dannenberg, 2020. "The Demand for Punishment to Promote Cooperation Among Like-Minded People," MAGKS Papers on Economics 202044, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Gürdal, Mehmet Y. & Gürerk, Özgür & Yahşi, Mustafa, 2021. "Culture and prevalence of sanctioning institutions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 92(C).
    12. Gürerk, Özgür, 2013. "Social learning increases the acceptance and the efficiency of punishment institutions in social dilemmas," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 229-239.
    13. Francesco Fallucchi & Jan Niederreiter & Massimo Riccaboni, 2021. "Learning and dropout in contests: an experimental approach," Theory and Decision, Springer, vol. 90(2), pages 245-278, March.
    14. Frimpong Boamah, Emmanuel, 2018. "Constitutional economics of Ghana’s decentralization," World Development, Elsevier, vol. 110(C), pages 256-267.
    15. Christian Thöni, 2014. "Inequality aversion and antisocial punishment," Theory and Decision, Springer, vol. 76(4), pages 529-545, April.
    16. Tobias Salz & Emanuel Vespa, 2020. "Estimating dynamic games of oligopolistic competition: an experimental investigation," RAND Journal of Economics, RAND Corporation, vol. 51(2), pages 447-469, June.
    17. Hinnosaar, Toomas, 2024. "Optimal sequential contests," Theoretical Economics, Econometric Society, vol. 19(1), January.
    18. Letina, Igor & Benkert, Jean-Michel, 2016. "Designing Dynamic Research Tournaments," VfS Annual Conference 2016 (Augsburg): Demographic Change 145738, Verein für Socialpolitik / German Economic Association.
    19. Hanaki, Nobuyuki & Tanimura, Emily & Vriend, Nicolaas J., 2019. "The Principle of Minimum Differentiation revisited: Return of the median voter," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 145-170.
    20. Kamei, Kenju, 2014. "Promoting Competition or Helping Less-Endowed? An Experiment on Collective Institutional Choices under Intra-Group Inequality," MPRA Paper 56774, University Library of Munich, Germany.

    More about this item

    Keywords

    Political Economy; Endogenous Institutions; Dynamic Games; Cooperation; Coordination; Contest; Experiments;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pur:prukra:1352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Business PHD (email available below). General contact details of provider: https://edirc.repec.org/data/kspurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.