Bipartite conflict networks with returns to scale technology

Qian Jiao, Bo Shen and Xiang Sun

Journal of Economic Behavior & Organization, 2019, vol. 163, issue C, 516-531

Abstract: This paper considers a complete bipartite conflict network model with returns to scale technology. We show that the impact of the returns to scale technology on agents’ equilibrium behaviors can be determined by two important factors: the size ratio of two coalitions and the degree of local interdependencies of conflicts. We find an inverted U relationship between the returns to scale technology and (individual and total) equilibrium efforts when two coalitions differ sufficiently in size and the degree of local interdependencies of conflicts is high. Our finding suggests that an increase in the returns to scale technology can be beneficial in the sense that it reduces conflict intensity.

Keywords: Conflict network games; Local interdependency; Returns to scale technology; Tullock contest (search for similar items in EconPapers)
JEL-codes: C72 D74 D85 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:163:y:2019:i:c:p:516-531

DOI: 10.1016/j.jebo.2019.05.001

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