A central feature of collective decision-making in many social groups, such as political coalitions, international unions, or private clubs, is that the rules that govern regulations, procedures for future decision-making, and inclusion and exclusion of members are made by the current members...

In an economy with weak economic and political institutions, the major institutional choices are made strategically by oligarchs and dictators. The conventional wisdom presumes that as rent-seeking is harmful for oligarchs themselves, institutions such as enforcement of the property rights will...