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Extremism drives out moderation


Klose, Bettina; Kovenock, Dan (2015). Extremism drives out moderation. Social Choice and Welfare, 44(4):861-887.

Abstract

This article examines the impact of the distribution of preferences on equilibrium behavior in conflicts modeled as all-pay auctions with identity-dependent externalities. Centrists and radicals are defined using a willingness-to-pay criterion that admits preferences more general than a simple ordering on the line. Extremism, characterized by a higher per capita expenditure by radicals than centrists, may persist and generate higher aggregate expenditure by radicals, even when they are relatively small in number. Our results demonstrate the importance of the institutions of conflict in determining the role of extremism and moderation in economic, political, and social environments.

This article examines the impact of the distribution of preferences on equilibrium behavior in conflicts modeled as all-pay auctions with identity-dependent externalities. Centrists and radicals are defined using a willingness-to-pay criterion that admits preferences more general than a simple ordering on the line. Extremism, characterized by a higher per capita expenditure by radicals than centrists, may persist and generate higher aggregate expenditure by radicals, even when they are relatively small in number. Our results demonstrate the importance of the institutions of conflict in determining the role of extremism and moderation in economic, political, and social environments.

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Additional indexing

Item Type:Journal Article, not refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Uncontrolled Keywords:Conflict, All-pay auction, Identity-dependent externalities, Radicalism, Extremism, Contest success function, D72, D74, C72, D44
Language:English
Date:2015
Deposited On:06 Feb 2015 10:37
Last Modified:05 Apr 2016 19:05
Publisher:Springer
ISSN:0176-1714
Additional Information:The final publication is available at Springer via http://dx.doi.org/10.1007/s00355-014-0864-1
Publisher DOI:https://doi.org/10.1007/s00355-014-0864-1
Permanent URL: https://doi.org/10.5167/uzh-108678

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