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Journal Article

The Dynamics of Within-Group and Between-Group Interaction

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Hausken,  Kjell
Theorien und Methoden, MPI for the Study of Societies, Max Planck Society;
University of Chicago, IL, USA;

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https://doi.org/10.1016/0304-4068(94)00709-J
(Publisher version)

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JME_24_1995_Hausken.pdf
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Citation

Hausken, K. (1995). The Dynamics of Within-Group and Between-Group Interaction. Journal of Mathematical Economics, 24(7), 655-687. doi:10.1016/0304-4068(94)00709-J.


Cite as: https://hdl.handle.net/21.11116/0000-000D-7F02-3
Abstract
The article strengthens and provides a dynamic extension of the theory on collective rent seeking and private provision of a public good. Each individual agent within each group chooses in continuous or discrete time a continuous or discrete effort level. The combined effort within each group provides within-group public goods which are used as an input in the between-group n-group competition for an external prize. Intergroup mobility and intergroup warfare are allowed for. Each group and each individual agent within each group get a fraction of the prize based on a linear combination of equity and relative effort. A model/algorithm is developed generating analytical results and simulations illustrating how the interaction within and between groups proceeds through time.