DP6333 | Self-enforcing Norms and the Efficient Non-cooperative Organization of Clans

Publication Date

08/06/2007

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Abstract

We study how norms can solve distributional conflict inside a clan and the efficient coordination of collective action in a conflict with an external enemy. We characterize a fully non-cooperative equilibrium in a finite game in which a self-enforcing norm coordinates the members on efficient collective action and on a peaceful distribution of the returns of collective action.