This paper studies the distribution of income, class formation, deformation and conflict, and fairness in a political economy combining basic features of capitalism with certain democratic institutions determining the wage level by voting. Copyright Martinus Nijhoff Publishers bv 1979

A large literature has accumulated which examines how the optimal solution of an agent maximising the expectations of a real-valued function depending on a rendom parameter p and the agents's behaviour x reacts to pertubations in the first and second moments of p. In this literature p is given...