Binswanger, Johannes; Prüfer, Jens - In: European Journal of Political Economy 28 (2012) 3, pp. 358-372
In this paper we aim to understand how bounded rationality affects performance of democratic institutions. We consider … alternative political institutions such as direct democracy or governance by experts. We find that, under limited strategic … sophistication, representative democracy is preferable to the other institutions from an ex ante perspective. …