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Asymmetric majority pillage games

Manfred Kerber, Colin Rowat and Naoki Yoshihara

No 701, Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: This paper studies pillage games (Jordan in J Econ Theory 131.1:26-44, 2006, “Pillage and property”), which are well suited to modelling unstructured power contests. To enable empirical test of pillage games’ predictions, it relaxes a symmetry assumption that agents’ intrinsic contributions to a coalition’s power is identical. In the three-agent game studied: (i) only eight configurations are possible for the core, which contains at most six allocations; (ii) for each core configuration, the stable set is either unique or fails to exist; (iii) the linear power function creates a tension between a stable set’s existence and the interiority of its allocations, so that only special cases contain strictly interior allocations. Our analysis suggests that non-linear power functions may offer better empirical tests of pillage game theory.

Keywords: power contests; core; stable sets (search for similar items in EconPapers)
JEL-codes: C71 D51 P14 (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-gth and nep-mic
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Handle: RePEc:hit:hituec:701