| Autor: |
Choi, Gyoung-Gyu |
| Předmět: |
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| Zdroj: |
Asian Journal of Law & Economics; Apr2020, Vol. 11 Issue 1, p1-8, 8p |
| Abstrakt: |
The paper considers the problem of allocating resources to economic goods and military goods (protecting property rights) in a contest model under an anarchic system which can be defined by the absence of a common superior authority to each state. I characterize the equilibrium and discuss its stability and robustness. The main finding is that if economic goods of the two states are complementary with Cobb-Douglas utility characteristics, the essential factor that affects a state's resource allocation is its own maximum military level of production out of its resource endowment. In this sense, there is a unique stable equilibrium. This equilibrium is robust with the sequence of the states' decisions insofar as the second mover's observability is imperfect even slightly. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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