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Dictators and Their Viziers: Agency Problems in Dictatorships

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Author Info
Georgy Egorov () (New Economic School/CEFIR)
Konstantin Sonin () (Institute for Advanced Study; New Economic School/CEFIR and CEPR)

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Abstract

The possibility of treason by a close associate has been a nightmare of most dictators throughout history. Better informed viziers are also better able to discriminate among potential plotters, and this makes them more risky subordinates for the dictator. To avoid this, dictators, especially those which are weak and vulnerable, sacrifice the competence of their agents, hiring mediocre but loyal subordinates. However, any use of incentive schemes by a dictator is limited by the fact that all punishments are conditional on the dictator’s own survival, and a dictator is typically unable to commit to the optimal (i.e., less than capital) punishment for those who unsuccessfully plotted against him. We endogenize loyalty and competence in a principal-agent game between a dictator and his (probably, few) viziers in both static and dynamic settings. The dynamic model allows us to focus on the succession problem that insecure dictators face.

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Publisher Info
Paper provided by Center for Economic and Financial Research (CEFIR) in its series Working Papers with number w0043.

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Length: 32 pages
Date of creation: Oct 2004
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Handle: RePEc:cfr:cefirw:w0043

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Related research
Keywords: dictatorship; loyalty and competence; positive political theory; principal-agent; non-democratic succession;

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  3. O'Flaherty, B., 1991. "How to Be a Dictator: The Advantages of Incumbency," Discussion Papers 1991_28, Columbia University, Department of Economics.
  4. Martin C. McGuire & Mancur Olson Jr., 1996. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 72-96, March. [Downloadable!] (restricted)
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  8. Overland, Jody & Simons, Kenneth L & Spagat, Michael, 2000. "Political Instability and Growth in Dictatorships," CEPR Discussion Papers 2653, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. George Egorov & Konstantin Sonin, 2005. "The Killing Game: Reputation and Knowledge in Non-Democratic Succession," Economics Working Papers 0054, Institute for Advanced Study, School of Social Science. [Downloadable!]
    Other versions:
  2. Georgy Egorov & Konstantin Sonin, 2005. "The Killing Game: Reputation and Knowledge in Politics of Succession," Game Theory and Information 0505003, EconWPA. [Downloadable!]
  3. Besley, Timothy J. & Kudamatsu, Masayuki, 2007. "Making Autocracy Work," CEPR Discussion Papers 6371, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Lazarev, Valery, 2007. "Political labor market, government policy, and stability of a non-democratic regime," MPRA Paper 2352, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  5. Daron Agemoglu & Davide Ticchi & Andrea Vindigni, 2006. "Emergence and Persistence of Inefficient States," LABORatorio R. Revelli Working Papers Series 54, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
    Other versions:
  6. Daron Acemoglu & Davide Ticchi & Andrea Vindigni, 2008. "A Theory of Military Dictatorships," NBER Working Papers 13915, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Ticchi, Davide & Vindigni, Andrea, 2007. "War and Endogenous Democracy," Papers 03-10-2008, Princeton University, Research Program in Political Economy. [Downloadable!]
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