Abstract
We study pillage games (Jordan in J Econ Theory 131(1):26–44, 2006), which model unstructured power contests. To enable empirical tests of pillage game theory, we relax a symmetry assumption that agents’ intrinsic contributions to a coalition’s power is identical. We characterise the core for all n. In the three-agent game: (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.
Original language | English |
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Journal | International Journal of Game Theory |
Early online date | 4 Jul 2023 |
DOIs | |
Publication status | E-pub ahead of print - 4 Jul 2023 |
Keywords
- Power contests
- Core
- Stable sets