Ruhr Economic Papers

TU Dortmund, 06/2007, 27 S./p., 8 Euro, ISBN 978-3-86788-010-7

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.