2008
DOI: 10.1007/s11127-008-9335-5
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Federations, coalitions, and risk diversification

Abstract: Government, Portfolio choice, Decision making under risk and uncertainty, H10, G11, D81,

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Cited by 4 publications
(3 citation statements)
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References 31 publications
(22 reference statements)
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“…However, national defense does not exhaust all the possible types of public good. In our model, the term 'public good' can be interpreted as mutual insurance (Chiang and Mahmud 2008). Hence, the present theory is more general than that of Riker.…”
Section: Literaturementioning
confidence: 95%
See 1 more Smart Citation
“…However, national defense does not exhaust all the possible types of public good. In our model, the term 'public good' can be interpreted as mutual insurance (Chiang and Mahmud 2008). Hence, the present theory is more general than that of Riker.…”
Section: Literaturementioning
confidence: 95%
“…First, unlike most other models of multi-ethnic nations (Chiang and Mahmud 2008 being an exception), we consider geography as an important factor. In order for a coalition to form among contiguous regions, each region must accept its neighbors as coalition partners.…”
Section: Motivationmentioning
confidence: 99%
“…Another strand of the literature examined risk diversification in other contexts (e.g., Bramoullé & Kranton, 2007a;Eisenhardt & Schoonhoven, 1996;Li & Suen, 2000). For example, in a theoretical paper, Chiang and Mahmud (2008) analyze the optimal size of nations by considering which regions are likely to form a coalition given, among other factors, the variance in income.…”
mentioning
confidence: 99%