There are N citizens who have to make a social decision about a set policies denotedby x ∈ A, where A denotes the set of feasible policies. Citizen’s preferencesover policy are denoted V i (x, j) ( where i = 1, ...,N) ,and j denotes the identityof the policy maker. This specification allows...

In a model with heterogeneity in managerial talent, we compare the economicand political consequences of reforms aimed at reducing fixed costs of entry (deregulation)and improving the efficiency of financial markets (financial reform). Theeffects of these reforms depend on the market where...