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Institutional reform paths

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  • Clemens Buchen

Abstract

This paper develops a dynamic population game in which agents play a simple anonymous‐exchange game of cooperating or defecting. Agents switch to the strategy with a higher expected payoff. Reformers can affect the payoff structure of the stage game to maximize the number of cooperators in the population by either enacting legal reform (institutional quality of contract law) or focusing on the macro outlook of the economy. Based on the theoretical model, the paper predicts which types the reformer should enact first and under which conditions reform will not be successful.

Suggested Citation

  • Clemens Buchen, 2023. "Institutional reform paths," Economics and Politics, Wiley Blackwell, vol. 35(3), pages 1099-1121, November.
    • Handle: RePEc:bla:ecopol:v:35:y:2023:i:3:p:1099-1121
    DOI: 10.1111/ecpo.12252
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    References listed on IDEAS

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