Abstract
This article examines the impact of the distribution of preferences on equilib-rium behavior in conflicts modeled as all-pay auctions with identity-dependentexternalities. Centrists and radicals are defined using a willingness-to-pay cri-terion that admits preferences more general than a simple ordering on the line.Extremism, characterized by a higher per capita expenditure by radicals thancentrists, may persist and generate higher aggregate expenditure by radicals,even when they are relatively small in number. Our results demonstrate theimportance of the institutions of conflict in determining the role of extremismand moderation in economic, political, and social environments.
Klose, Bettina Susanne