Ruhr Economic Papers

Ruhr Economic Papers #16

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

by Kai A. Konrad and Wolfgang Leininger

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



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.

JEL-Classification: D72, D74, H41

Keywords: Free-riding; defence; collective action; distributional conflict; war; norms