Authoritarian election as an incentive scheme

2020 ◽  
Vol 32 (3) ◽  
pp. 460-493
Author(s):  
Hao Hong ◽  
Tsz-Ning Wong

Authoritarian rule requires teamwork of political elites. However, elite class members may lack incentive for the contribution of their efforts. In this paper, we develop a model to study the decision of authoritarian rulers to introduce elections. Our model suggests that elections can motivate the ruling class to devote more effort to public good provision. As a result, elections alleviate the moral-hazard-in-teams problem within the authoritarian government. Excessive electoral control hinders the introduction of elections, but mild electoral control facilitates it. Our findings offer a new perspective on understanding authoritarian elections and explain many stylized facts in authoritarian regimes.

1994 ◽  
Vol 36 (1) ◽  
pp. 1-36 ◽  
Author(s):  
Guy Poitras ◽  
Raymond Robertson

For much of the twentieth century, Third World economies that were based upon import-substitution industrialization (ISI) were dominated by authoritarian regimes. When economic liberalization began to overtake many of these countries, however, as happened in recent years, the question arose as to whether authoritarian rule had not become anachronistic in mediating the relations between state and economy in the Third World.The experience of Mexico strongly suggests that authoritarian rule remains a potent force in this era of economic change. Although Mexico's authoritarian government continued to retain power even in the presence of a liberal economic agenda, adopted during the early 1990s, it did find it expedient to make some adaptations in the system. The most significant of these, by far, was to make alterations in the ruling coalition that had governed the country since the early 1930s, rather than to embark upon a transition to democracy. These changes represented the regime's most critical initiative in attempting to meet, if not reconcile, the conflicting claims of authoritarianism on the one hand with the demands of economic liberalization on the other.


Games ◽  
2021 ◽  
Vol 12 (1) ◽  
pp. 4
Author(s):  
David Jimenez-Gomez

I develop a dynamic model with forward looking agents, and show that social pressure is effective in generating provision in a public good game: after a small group of agents start contributing to the public good, other agents decide to contribute as well due to a fear of being punished, and this generates contagion in the network. In contrast to earlier models in the literature, contagion happens fast, as part of the best response of fully rational individuals. The network topology has implications for whether contagion starts and the extent to which it spreads. I find conditions under which an agent decides to be the first to contribute in order to generate contagion in the network, as well as conditions for contribution due to a self-fulfilling fear of social pressure.


Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 55
Author(s):  
Markus Kinateder ◽  
Luca Paolo Merlino

In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs. Additionally, we show that the game is a potential game, even when we introduce heterogeneity along several dimensions. Using this result, we introduce stochastic best reply dynamics and show that this admits a unique and stationary steady state distribution expressed in terms of the potential function of the game. Hence, even if the set of Nash equilibria is potentially very large, the long run predictions are sharp.


2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Hide-Fumi Yokoo

AbstractI develop a model of inequality aversion and public goods that allows the marginal rate of substitution to be variable. As a theoretical foundation, utility function of the standard public goods model is nested in the Fehr-Schmidt model. An individual’s contribution function for a public good is derived by solving the problem of kinky preference and examining both interior and corner solutions. Results show that the derived contribution function is not monotonic with respect to the other individual’s provision. Thus, the model can be used to explain empirical evidence for the effect of social comparison on public-good provision.


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