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Political entrepreneurship and bidding for political monopoly

Author

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  • Michael Wohlgemuth

    (Max-Planck-Institut zur Erforschung von Wirtschaftssystemen, Kahlaische Strasse 10, D-07745 Jena, Germany)

Abstract

An analytical framework for dealing with political entrepreneurship and reform is proposed which is based on some new combinations of Schumpeterian political economy, an extended version of Tullock's model of democracy as franchise-bidding for natural monopoly and some basic elements of New Institutional Economics. It is shown that problems of insufficient award criteria and incomplete contracts which may arise in economic bidding schemes, also - and even more so - characterise political competition. At the same time, these conditions create leeway for Schumpeterian political entrepreneurship. The same is true for various barriers to entry in politics. These barriers affect a trade-off between political stability and political contestability which will be discussed with special emphasis on incentives and opportunities for political entrepreneurship in the sense of risking long-term investments in basic political reforms.

Suggested Citation

  • Michael Wohlgemuth, 2000. "Political entrepreneurship and bidding for political monopoly," Journal of Evolutionary Economics, Springer, vol. 10(3), pages 273-295.
    • Handle: RePEc:spr:joevec:v:10:y:2000:i:3:p:273-295
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    Citations

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    Cited by:

    1. Robin Douhan & Magnus Henrekson, 2010. "Entrepreneurship and second-best institutions: going beyond Baumol’s typology," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 629-643, August.
    2. Trofimov, Ivan, 2017. "Entrepreneurship and policy dynamics: a theoretical framework," MPRA Paper 79497, University Library of Munich, Germany.
    3. Silvia Fedeli & Francesco Forte, 2011. "The law of survival of the political class:an analysis of the Italian Parliament (1946-2010)," Working Papers in Public Economics 146, University of Rome La Sapienza, Department of Economics and Law.
    4. Marianne Van Der Steen & John Groenewegen, 2009. "Policy entrepreneurship: empirical inquiry into policy agents and institutional structures," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 41-61.
    5. Philip Catney & John M Henneberry, 2016. "Public entrepreneurship and the politics of regeneration in multi-level governance," Environment and Planning C, , vol. 34(7), pages 1324-1343, November.
    6. Douhan, Robin & Henrekson, Magnus, 2007. "The Political Economy of Entrepreneurship: An Introduction," Working Paper Series 688, Research Institute of Industrial Economics.
    7. Michael Wohlgemuth, 2011. "Is there a Paradox of a Hayekian Paternalist?," Papers on Economics and Evolution 2011-22, Philipps University Marburg, Department of Geography.
    8. Klein, Peter G. & Mahoney, Joseph T. & McGahan, Anita M. & Pitelis, Christos N., 2009. "Toward a Theory of Public Entrepreneurship," Working Papers 09-0106, University of Illinois at Urbana-Champaign, College of Business.
    9. Hederer, Christian, 2007. "Political Entrepreneurship and Institutional Change: an Evolutionary Approach," MPRA Paper 8249, University Library of Munich, Germany.
    10. Pavel Kuchař, 2016. "Entrepreneurship and institutional change," Journal of Evolutionary Economics, Springer, vol. 26(2), pages 349-379, May.
    11. TROFIMOV, Ivan, 2017. "Systemic Analysis of Trade Liberalisation: Policy Entreprenuership and Behavioural Variables in a Two-Legal Game Framework," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(2), pages 217-244.
    12. Wohlgemuth, Michael, 2008. "A European social model of state-market relations: the ethics of competition from a neo-liberal perspective," Freiburg Discussion Papers on Constitutional Economics 08/9, Walter Eucken Institut e.V..
    13. Michael Wohlgemuth, 2002. "Democracy and Opinion Falsification: Towards a New Austrian Political Economy," Constitutional Political Economy, Springer, vol. 13(3), pages 223-246, September.
    14. Hudik, Marek, 2021. "Push factors of endogenous institutional change," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 504-514.

    More about this item

    Keywords

    Schumpeter and public choice - Political entrepreneurs - Entry barriers - Policy reform - Political competition;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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