Economics at your fingertips  

Entitlement to assort: Democracy, compromise culture and economic stability

Jiabin Wu ()

Economics Letters, 2018, vol. 163, issue C, 146-148

Abstract: We propose a simple model to support Rodrik’s (2000) conjecture that democracy lowers economic instability through breeding compromise culture. In the model, a population of compromisers and opportunists collectively bargain over the assortativity level of matching through a democratic political institution. We show that compromisers are able to achieve a positive level of assortativity which helps them to avoid matching with opportunists. This in turn raises compromisers’ payoffs above opportunists’ and eventually compromisers dominate the population through cultural evolution.

Keywords: Democracy; Economic stability; Assortativity; Entitlement; Evolutionary game theory (search for similar items in EconPapers)
JEL-codes: C73 D72 O10 Z10 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-03-31
Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:146-148