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Baron Diermeier (2006) - Strategic Activism And Nonmarket Strategy (view source)
Revision as of 18:22, 28 February 2011
, 18:22, 28 February 2011→The Market for Activists
Activists must be supported by citizens and could adopt strategies or either rewards, harm, or both.
The expected cost to only rewards (in equilibrium) are:
:<math>C^r = \frac{p \gamma^2}{4 \eta^2 \alpha}\,</math>
:<math>\frac{G^r}{C^r} = \frac{G^h}{C^h} = \frac{G^*}{C^*} = 1\,</math>
Where <math>C^h\,</math> and <math>C^*\,</math> are the expected costs for activists that only use harm and that use both, respectively.
However, the demands are as follows:
So the activist that uses both harm and rewards accomplishes more.
===Self-Regulation===
