We examine who benefits when there is a strong leader in place, and who benefits when a situation lacks a proper leader. There are fractious terrorist groups who seek to serve the same people in common cause against a common enemy. The groups compete for rents obtained from the public by engaging in actions against the common enemy. We determine the leadership structure under which each group is better off, as well as the circumstance that the common enemy prefers. We are able to state simple and general conditions for each group and the common enemy to benefit.
All Science Journal Classification (ASJC) codes
- Social Sciences (miscellaneous)
- Economics and Econometrics
- All-pay auction