Horizontal and Vertical Conflict: Experimental Evidence.

Summary: We experimentally explore the connections between horizontal conflict of interests (citizens have heterogeneous preferences over collective decisions) and vertical conflict of interests (agents in charge of implementing collective decisions earn political rents). We identify two sets of mod...

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Published in:Kyklos Vol. 72; no. 2; pp. 239 - 270
Main Authors: Galiani, Sebastian, Long, Cheryl, Navajas Ahumada, Camila, Torrens, Gustavo
Format: Article
Published: Wiley-Blackwell May2019
Subjects:
Online Access:View this record in EBSCOhost
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        135709879
        10.1111/kykl.12201
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        atl: Horizontal and Vertical Conflict: Experimental Evidence.
      aug:
        au:
          Galiani, Sebastian
          Long, Cheryl
          Navajas Ahumada, Camila
          Torrens, Gustavo
      su:
        Resource allocation
        Equality
        Corruption
        Conflict of interests
        Endowments
      sug:
        subj:
          Resource allocation
          Equality
          Corruption
          Grantmaking Foundations
          Conflict of interests
          Endowments
      ab: Summary: We experimentally explore the connections between horizontal conflict of interests (citizens have heterogeneous preferences over collective decisions) and vertical conflict of interests (agents in charge of implementing collective decisions earn political rents). We identify two sets of models that incorporate both types of conflicts: electoral models with endogenous rents, and common‐agency models. We adapt these models to a laboratory setting and test their main theoretical predictions. In both cases we find support for the proposition that more intense horizontal conflict leads to higher rents. Our findings have important implications. At the macro level, they help explaining the persistence of corruption in very unequal societies. At the micro level, our findings suggest that anti‐corruption programs should allocate more resources (e.g., inspectors and auditors) to areas with intense horizontal conflicts.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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