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Dynamics and Stability of Constitutions, Coalitions, and Clubs

  • Daron Acemoglu
  • Georgy Egorov
  • Konstantin Sonin

In dynamic collective decision making, current decisions determine the future distribution of political power and influence future decisions. We develop a general framework to study this class of problems. Under acyclicity, we characterize dynamically stable states as functions of the initial state and obtain two general insights. First, a social arrangement is made stable by the instability of alternative arrangements that are preferred by sufficiently powerful groups. Second, efficiency-enhancing changes may be resisted because of further changes they will engender. We use this framework to analyze dynamics of political rights in a society with different types of extremist views. (JEL D71, D72, K10)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.102.4.1446
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 102 (2012)
Issue (Month): 4 (June)
Pages: 1446-76

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Handle: RePEc:aea:aecrev:v:102:y:2012:i:4:p:1446-76
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