Ghosal, Sayantan; Proto, Eugenio - In: Journal of Public Economics 93 (2009) 9-10, pp. 1078-1089
We analyze a model where there is uncertainty about the future power of two ex-ante symmetric elites to appropriate surplus, and ex-ante surplus sharing agreements are not binding. We show that in an oligarchy, the stronger elite appropriates the entire available surplus, whereas a democracy...