Conflict in Law and Politics
Paper Session
Sunday, Jan. 8, 2017 1:00 PM – 3:00 PM
Hyatt Regency Chicago, Dusable
- Chair: Bruno Strulovici, Northwestern University
Can rules and institutions be sustained by self-interested agents? A theory of diluted incentives, monitoring cascades, and social collapse
Abstract
This paper is concerned with the following question: can a society populated by purely self-interested agents sustain socially beneficial rules and institutions? The central premise of the paper is that the information necessary to enforce rules and institutions cannot be taken for granted: For example, criminal investigations are difficult tasks which may be botched or biased. Socially-valuable regulations concerning labor, health, and other public matters may be ignored or circumvented, and those in charge of enforcing them may be bribed, deceived, or tempted to abuse their power.The model makes three main assumptions. First, each signal about an agent's behavior is either costly to acquire or manipulable by some other agent whose identity may only be revealed by an investigation. Second, the population is large and all actions are disciplined by third-party enforcement. Third, the investigation process following a crime has a sequential ``monitoring-the-monitor'' structure in which each monitor may conduct a genuine, costly investigation, shirk, fabricate or destroy evidence, and/or be bribed by the person he investigates.
Under a general specification for agents' actions and payoffs, the model has an essentially unique equilibrium, in which no agent ever makes any effort: agents' failure to internalize the value of institutions and rules leads to a complete social collapse. The result is driven by a combination of two factors: the difficulty to incentivize any given agent for the many tasks that he may face (diluted incentives) and the existence of monitoring cascades which require unbounded punishments or rewards to implement any significant level of investigation.
Geography, Resources and Conflict
Abstract
There is a collection of kingdoms. A kingdom shares a common border with other kingdoms, that may in turn share borders with still others. Every kingdom is endowed with resources and is controlled by a ruler. The ruler can choose to fight with neighboring rulers to expand his domain.
The winner of a war takes control of the loser's resources and the kingdom. The probability of winning depends on the resources of the combatants
and on the technology of fighting. Rulers seek to maximize the size of resources they control. We study the influence of geography, resources,
and technology on the dynamics of war and the prospects for peace.
Institutions, Repression, and the Spread of Protest
Abstract
We analyze the strategic interactions between a state that decides whether to repress a group of activists and the general public that decides whether to protest following repression. Strategic complementarities between the strategies of the public and the state generate multiple equilibria, suggesting a role for social norms. This analysis sheds light on conflicting empirical findings regarding the determinants of repression. We then use this framework to investigate the effects of exogenous restrictions on repression, imposed by international institutions, showing that weak restrictions can paradoxically increase repression. This result provides a rationale for the puzzling empirical finding that international pressure can increase repression. Finally, we study the effects of endogenous restrictions, imposed by domestic institutions set up by the state to restrict its own subsequent repression. We characterize when the state can benefit from introducing such institutions, offering an explanation for the presence of partially independent judiciaries in authoritarian regimes.JEL Classifications
- D0 - General