Interregional negotiations and strategic delegation under government subsidy schemes
Interregional negotiations and strategic delegation under government subsidy schemes
复制标题
政府补贴计划下的区域间谈判和战略授权
DOI:
10.1111/jpet.12494
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发表时间:
2020
影响因子:
1.1
通讯作者:
Shinohara Ryusuke
中科院分区:
文献类型:
--
作者:
Qing Hu;Tomomichi Mizuno;and Junghyun Song;Shinohara Ryusuke
We examine thestrategic delegationproblem in the context of interregional negotiations under the subsidy policies of a central government. It is well known that when such negotiations are delegated to representatives, each region in a country elects its representative strategically, resulting in inefficient negotiation outcomes. This study focuses on a common subsidy policy called acost‐matching grantto examine whether an optimal grant exists that restores the efficiency of negotiation outcomes. Our results show that the central government obtains this optimal grant if the manipulability of the negotiation breakdown outcome is sufficiently weak. The strength of the manipulability is important because introducing a grant generates a new kind of manipulation of negotiation breakdown outcomes. However, when a new representative is elected after a negotiation breaks down, the new manipulability is negated. Hence, the central government always obtains the optimal cost‐matching grant.