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Incentives and Political Economy$
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Jean-Jacques Laffont

Print publication date: 2001

Print ISBN-13: 9780199248681

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199248680.001.0001

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Optimal Constitutional Response to Coalition Formation

Optimal Constitutional Response to Coalition Formation

Chapter:
(p.181) 8 Optimal Constitutional Response to Coalition Formation
Source:
Incentives and Political Economy
Author(s):

Jean‐Jacques Laffont (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0199248680.003.0008

This chapter studies horizontal collusion between interest groups in a Bayesian setting. Various models under complete and incomplete information are introduced and the different results are obtained as a function of the correlation of private information. The role of transaction costs within the coalition is found to be of crucial importance and a number of unresolved issues are outlined for future research.

Keywords:   Bayesian, coalition, horizontal collusion, incomplete information, interest groups, private information, transaction costs

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