Simultaneous inter- and intra-group conflicts (Q2373379)

This papers studies the trade-off between production and appropriation in the presence of simultaneous inter- and intra-group conflicts. (An example of appropriative activities is the competition for subsidies among members of the EU.) In the proposed model, if the inter-group conflict is decisive, there is less intra-group conflict, and also, if the intra-group conflict is less decisive, there is more inter-group conflict. Conditions are given for which increasing the number of groups leads to more productive and less appropriative activities. An optimal size of the organization is determined.