nep-cdm New Economics Papers
on Collective Decision-Making
Issue of 2022‒05‒16
ten papers chosen by
Stan C. Weeber, McNeese State University

  1. Coalition formation versus free riding in rent-seeking contests (title of the paper) By Lukas Block
  2. Becoming neighbors with refugees and voting for the far-right? The impact of refugee inflows at the small-scale level By Fremerey, Melinda; Hörnig, Lukas; Schaffner, Sandra
  3. Party’s rating and electoral forecasting: the case of French Presidential in 2022 By François Facchini
  4. Network formation with NIMBY constraints By Lukas Block
  5. Dismantling the 'Jungle' : Relocation and Extreme Voting in France By Paul Vertier; Max Viskanic; Matteo Gamalerio
  6. The crooked timber that bore fruit: Peruvian fascist intellectuals of the 1930s and the echoes of their influence nowadays By César Castillo-García
  7. Collective Learning and Distributive Uncertainty By Ginzburg, Boris
  8. The Impact of Forced Migration on In-Group and Out-Group Social Capital By Anselm Hager; Justin Mattias Valasek; Justin Mattias Valasek
  9. Fostering co-operation through participation in natural resource management. An integrative review By Ortiz-Riomalo, Juan Felipe; Koessler, Ann-Kathrin; Engel, Stefanie
  10. Within-Group Heterogeneity in a Multi-Ethnic Society By Artiles, Miriam

  1. By: Lukas Block (Paderborn University)
    Abstract: We study lobby group formation in a two-stage model where the players first form lobby groups that then engage in a rent-seeking contest to influence the legislator. However, the outcome of the contest affects all players according to the ideological distance between the implemented policy and the players' preferences. The players can either lobby by themselves, form a coalition of lobbyists or free ride. We find that free coalition formation is reasonable if either players with moderate preferences face lobby groups with extreme preferences, or if there are two opposing coalitions with an equal number of members. Otherwise, there are always free riders among the players. (abstract of the paper)
    Keywords: Group formation, Rent-seeking, Free riding
    JEL: C71 D72 D74
    Date: 2022–04
  2. By: Fremerey, Melinda; Hörnig, Lukas; Schaffner, Sandra
    Abstract: We investigate the effect of the refugee inflow between 2014 and 2017 on voting for the far-right party Alternative for Germany (AfD) in the national parliamentary election in 2017 in Germany. Drawing on unique small-scale data enables us to distinguish between the contact theory, captured by the inflow of refugees into the immediate neighborhood (1km x 1km), and county-level (NUTS 3) effects, which might pick-up other, broader factors such as media coverage or specific county-level policies. We alleviate concerns of an endogenous refugee allocation by a shift-share instrument. Our results indicate that the contact theory is valid in urban West Germany, i. e., higher refugee inflows in West German urban neighborhoods decrease the shares of far-right voting, while there is no robust evidence of a relationship between refugee inflow and far-right vote shares in East Germany and rural West Germany.
    Keywords: voting behavior,neighborhood characteristics,refugees,immigration
    JEL: D72 J15 R23
    Date: 2022
  3. By: François Facchini (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article is an update and extension of the electoral forecasting model of Lafay, Facchini and Auberger (2007) for the French presidential elections of 2022. Lafay and al. argued that the Socialist Party's rating was a good way to predict the vote split in the second round of elections between the left and the right. Socialist Pary's rating, nonetheless, cannot explain Emmanuel Macron's victory in the 2017 elections. This does not mean that party ratings are not a good predictor of the 2022 elections, if a number of adjustments are made. Based on party ratings the indicators proposed in this article argue that the scores in the first round of the April 2022 elections should be as follows: 30.5% for Emmanuel Macron, 22.7% for Valérie Pécresse (all the candidates of right wing), 18,7% for Marine Le Pen and 24.7% for the left and far left. The second round Macron - Pécresse is favorable to Emmanuel Macron, but depends fundamentally on the vote transfers between the left and the outgoing President. If the left abstains and Marine Le Pen's election rallies to the candidate of the right (LR), then Valérie Pécresse can win with a score of 51% against 49%.
    Date: 2022–03–23
  4. By: Lukas Block (Paderborn University)
    Abstract: We study the structure of power networks in consideration of local protests against certain power lines ('not-in-my-backyard'). An application of a network formation game is used to determine whether or not such protests arise. We examine the existence of stable networks and their characteristics, when no player wants to make an alteration. Stability within this game is only reached if each player is sufficiently connected to a power source but is not linked to more players than necessary. In addition, we introduce an algorithm that creates a stable network. (abstract of the paper)
    Keywords: Network formation, NIMBY, Power networks, Nash stability
    JEL: C71 D72 D74
    Date: 2022–04
  5. By: Paul Vertier (Sciences Po - Sciences Po, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Max Viskanic (Sciences Po - Sciences Po, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po); Matteo Gamalerio
    Abstract: Large migrant inflows have in the past spurred anti-immigrant sentiment, but is there a way small inflows can have a different impact? In this paper, we exploit the redistribution of migrants in the aftermath of the dismantling of the "Calais Jungle" in France to study the impact of the exposure to few migrants. Using an instrumental variables approach, we find that in the presence of a migrant center (CAO), the percentage growth rate of vote shares for the main far-right party (Front National, our proxy for anti-immigrant sentiment) between 2012 and 2017 is reduced by about 12.3 percentage points. Given that the Front National vote share increased by 20% on average between 2012 and 2017 in French municipalities, this estimation suggests that the growth rate of Front National votes in municipalities with a CAO was only 40% compared to the increase in municipalities without a CAO (which corresponds to a 3.9 percentage points lower increase). These effects, which dissipate spatially and depend on city characteristics, and crucially on the inflow's size, point towards the contact hypothesis (Allport (1954)).
    Keywords: migrant inflows,voting
    Date: 2020–09–01
  6. By: César Castillo-García (Department of Economics, New School for Social Research)
    Abstract: In contrast to European and other Latin American experiences, researchers understand Peruvian fascism as a simple mimicry (a political alternative of the 1930s that regimes and movements look to replicate) or the product of transnational propaganda looking for public support to Mussolini and Franco. To avoid this reductionism, this paper proposes a double-sided definition based on Vajda (1976) and Paxton (1998) to understand fascism as a movement and an ideology. That enables us to identify the Peruvian fascism by studying the actions and ideas of three intellectuals who sympathized with it: José de la Riva-Agüero, Raúl Ferrero Rebagliatti, and Víctor Andrés Belaúnde. I argue that their discourse is a symbiosis between Peruvian authoritarian political tradition and European fascisms. Even though these fascist intellectuals did not create a strong political movement, they incepted political concepts regarding social policy, the government, the nation, the relations between State and the church, and anti-Marxism in public discussion. As a result, they passed on elements of the political repertory supported by the current new right-wing populism in Peru.
    Date: 2022–04
  7. By: Ginzburg, Boris
    Abstract: I study a committee that is considering a costly project whose distributive consequences are unknown. The committee is divided into two factions. Support of both factions is required for the project to be approved. By delaying approval, the committee can gradually learn which faction benefits from the project. I show that a project that gives a lower payoff to everyone is more likely to be approved than a more socially efficient project. Furthermore, the equilibrium amount of learning is excessive, and a deadline on adopting the project is socially optimal in a wide range of settings.
    Keywords: voting, learning, reform adoption, collective experimentation, distributive uncertainty
    JEL: D72 D83
    Date: 2022–03–09
  8. By: Anselm Hager; Justin Mattias Valasek; Justin Mattias Valasek
    Abstract: In this paper, we study how forced migration impacts the in-group and out-group social capital of Syrian refugees and the host population in Northern Lebanon by administering a novel survey experiment in which we manipulate the salience of the migration experience (for refugees) and the refugee crisis (for the host population). Additionally, we study the social spillovers to Palestinians, an established refugee population in Lebanon. We find that the impact of forced migration is largely restricted to the Syrian refugee-Lebanese host population channel, and that it increases the relative disparity between in-group and out-group social capital. This may cause refugees to favor in-group interactions and therefore forgo more economically advantageous interactions with out-group members.
    Keywords: refugees, migration, social capital, experiment, ethnicity
    JEL: C90 J15 D91
    Date: 2022
  9. By: Ortiz-Riomalo, Juan Felipe; Koessler, Ann-Kathrin; Engel, Stefanie
    Abstract: Solving humanity’s social-environmental challenges calls for co-operation by the relevant actors. Hence, involving them in the policy process has been deemed both necessary and promising. But how and to what extent can participatory policy interventions effectively foster co-operation for sustainable natural resource management? Research on collective action and research on participatory governance offer insights on this question but have hitherto remained largely unconnected. In particular, results of field and lab experiments on collective action can complement those of case studies on participatory governance to shed further light on the potential (institutional and behavioural) impacts and mechanisms of participatory interventions. This article reviews and integrates key insights of these strands of research using the Institutional Analysis and Development (IAD) framework. Our review shows that participatory interventions can foster co-operation (a) by helping the relevant actors craft adequate institutional arrangements, and (b) by addressing and/or influencing relevant actors’ attributes (i.e. their individual and shared understandings, beliefs, trust and preferences). However, to fulfil their potential, organisers of participatory interventions need to soundly design and implement them, adequately embedding them in the broader context. They must be complemented with proper follow-up, enforcement and conflict-resolution mechanisms to nurture, reassure and sustain trust and co-operation.
    Keywords: cooperation,collective action,social dilemmas,participatory governance,natural resource management,environmental policy,natural resource policy
    JEL: D72 D79 P32 P48
    Date: 2022
  10. By: Artiles, Miriam
    Abstract: Is ethnic diversity good or bad for economic development? Most empirical studies find corrosive effects. In this paper, I show that ethnic diversity need not spell poor development outcomes–a history of within-group heterogeneity can turn ethnic diversity into an advantage for long-run development. I collect new data from a natural experiment regarding Peru's colonial history: the forced resettlement of native populations in the 16th century. This intervention forced together various ethnic groups into new jurisdictions. In those jurisdictions where colonial officials concentrated individuals with a history of within-group heterogeneity, who, prior to colonization, worked in complementary climates of the Andes, ethnic diversity results in systematically lower costs and may even become advantageous. Neither precolonial groups' political complexity nor their degree of economic development explain this result. The transmission of prosocial behavior is one likely channel. I also find evidence consistent with a positive role of economic complementarities between ethnic groups.
    Keywords: Ethnic Diversity, Within-Group Heterogeneity, Long-Run Economic Development
    JEL: J15 N16 O10 O12 Q56 Z10
    Date: 2022–04–16

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