Why do rulers play by the rules? We show that the legality requirement under the rule of law implements an endogenous enforcement mechanism supporting constitutionality. Agents which do not obey unconstitutional legal norms are not sanctioned under constitutional rule. A principal who defects...

We establish coalitional stable party structures of a party formation game in an elected assembly. Farsighted political players can commit to form parties and to vote on policies according to the party position which is determined by intra-party majority rule. Parties may form governments and...

The authors characterize equilibria of an income reporting game with bounded returns and no commitment where detected tax evaders are charged the maximally feasible amount. Introducing partial commitment to punishment relief eliminates multiplicity of equilibria. The authors identify a unique...