IDEAS home Printed from https://ideas.repec.org/p/zbw/csledp/9904.html
   My bibliography  Save this paper

Constitutions as Equilibria: A Game-theoretic Approach to Positive Constitutional Economics

Author

Listed:
  • Kirstein, Roland
  • Voigt, Stefan

Abstract

The aim of this paper is to derive conditions under which either dictatorship or the rule of law are the equilibria of a post-constitutional game. It thus contributes to positive constitutional economics, i.e., the research program that is interested in explaining the emergence of constitutions and their change over time. In our model, society is assumed to consist of two groups one of which has a comparative advantage in using violence. Violence can be used to produce (transactional) security as well as to exploit the weaker group, which has a comparative advantage in producing a private good. Yet, exploitation is limited: it increases the chances of a revolution and reduces the incentives of the exploited group to produce the private good. The model identifies the conditions under which the two groups will comply with a social contract which consists of the exchange of high effort in producing the private good against provision of security. We also identify conditions under which a social contract is cheap talk and exploitation occurs.

Suggested Citation

  • Kirstein, Roland & Voigt, Stefan, 1999. "Constitutions as Equilibria: A Game-theoretic Approach to Positive Constitutional Economics," CSLE Discussion Paper Series 99-04, Saarland University, CSLE - Center for the Study of Law and Economics.
  • Handle: RePEc:zbw:csledp:9904
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/23057/1/9904cons.pdf
    Download Restriction: no

    More about this item

    Keywords

    Self-enforcing contracts; Rule of law; dictatorship; autocracy; Positive Constitutional Economics;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:csledp:9904. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/fosaade.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.