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We provide a potential explanation for the absence of, and unwillingness to create, centralized power in the hands of a national state based on the political agenda effect. State centralization induces citizens of different backgrounds, interests, regions or ethnicities to coordinate their...
Persistent link: https://www.econbiz.de/10012991695
votes. 'This vote,' we hear, ' will either win by a little or lose by a lot.' Real-world examples suggest coalition leaders …
Persistent link: https://www.econbiz.de/10014175679
coalitions to provide public goods. Theory is ambiguous on the equilibrium coalition size and contribution rates. We examine the … coalition to provide the good. Contrary a core theoretical result, we find that coalition size increases when the public good … emergence of coalitions, their size, and how uncertainty in public goods provision affects contribution levels and coalition …
Persistent link: https://www.econbiz.de/10013153581
We study the formation of a ruling coalition in political environments. Each individual is endowed with a level of … political power. The ruling coalition consists of a subset of the individuals in the society and decides the distribution of … resources. A ruling coalition needs to contain enough powerful members to win against any alternative coalition that may …
Persistent link: https://www.econbiz.de/10012778980
the policies they can pursue are constrained by the identity of the coalition members. In the model, a formateur picks a … coalition and negotiates for the allocation of the surplus it is expected to generate. The formateur is free to change … generalized version of a Nash Bargaining Solution in which —in contrast to the standard solution— the coalition is endogenous and …
Persistent link: https://www.econbiz.de/10012890469
determine conditions for their uniqueness. We show how this framework can be applied in political economy, coalition formation …
Persistent link: https://www.econbiz.de/10012770673
In this paper we examine exclusion accomplished by a coalition of firms—frequently, a coalition of suppliers and … 1880s, which was controlled by a complex coalition of refiners and wholesalers. We assess the incentives and conduct of the …
Persistent link: https://www.econbiz.de/10012870053
pessimistic conclusions from the theory: only few players form a coalition when the institution prescribes the full … (coalitions) of players. International agreements serve as one example. This paper experimentally tests theory on the formation of … internalization of mutual benefits of members. Contrary to theory, coalitions that try to reduce the free-riding incentives by …
Persistent link: https://www.econbiz.de/10013143768
We derive a lower bound for the size of the permanent component of asset pricing kernels. The bound is based on return properties of long-term zero-coupon bonds, risk-free bonds, and other risky securities. We find the permanent component of the pricing kernel to be very large; its volatility is...
Persistent link: https://www.econbiz.de/10012787651
We show how to use conditioning information optimally to construct a sharper unconditional Hansen-Jagannathan (1991) bound. The approach in this paper is different from that of Gallant, Hansen and Tauchen (1990), but both approaches yield the same bound when the conditional moments are known....
Persistent link: https://www.econbiz.de/10012788973