Resource title

Institutional competition, political process and holdup

Resource image

image for OpenScout resource :: Institutional competition, political process and holdup

Resource description

We compare the effect of legal and institutional competition for the design of labor institutions in an environment characterized by holdup problems in human and physical capital. We compare autarky with the two country case, assuming that capital is perfectly mobile and labor immobile. We distinguish two cases. In the first, the political system is free from capture, while in the second, we examine the case where labor captures the institutional design problem. We find that in the former case, a competition of systems reduces welfare while in the latter it improves the overall outcome.

Resource author

Bruno Deffains, Dominique M. Demougin

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25110

Resource license

Adapt according to the presented license agreement and reference the original author.