Democracy as a Game of Trust: The Limits of Generality Constraints

Alexandra Oprea ()
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Alexandra Oprea: Australian National University

Homo Oeconomicus: Journal of Behavioral and Institutional Economics, 2019, vol. 36, issue 3, No 6, 227-248

Abstract: Abstract Unconstrained majoritarian democracy is often bitterly partisan, economically inefficient, and subject to rent-seeking by powerful interest groups. Can we improve upon these outcomes without abandoning popular democratic institutions such as decisions by simple majority rule? In Politics by Principle, not Interest, Buchanan and Congleton (1998) argue that we can. They propose a generality principle that would constitutionally prohibit majorities from favoring members of dominant coalitions or special interest groups. This paper argues that generality-constrained democratic politics does not necessarily outperform the unconstrained version. By modeling two-party majoritarian democracy as a type of trust game, one can identify circumstances where generality-constrained democracy results in less efficient outcomes than the unconstrained version. At the same time, generality constraints can reduce incentives for political participation and collective action by ordinary citizens in ways that may erode democratic institutions such as popular elections and political parties. This paper therefore urges caution and further investigation before implementing such constitutional constraints.

Keywords: Political parties; Generality; Constitutional political economy; Game theory; Democratic theory; D70; D72 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s41412-019-00092-7

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