Preemption contests between groups

A-Tier
Journal: RAND Journal of Economics
Year: 2020
Volume: 51
Issue: 3
Pages: 934-961

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a preemption game between competing groups; firms lobbying individually for their groups' interests provide an empirical example. Among symmetric groups, the first firm to take action bears an (unobserved) cost and wins the prize on behalf of its group. In equilibrium, the firm with the lowest cost takes action, but with delay. More competition and a smaller ratio of costs to benefits reduce delay. Firms in larger groups wait longer, but group action can occur earlier, as the probability of a low‐cost firm is higher. Asymmetries in group size or strength of externalities also matter.

Technical Details

RePEc Handle
repec:bla:randje:v:51:y:2020:i:3:p:934-961
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-24