This paper shows that peer pressure may lead to dynamic convergence to a norm that is skewed with respect to preferences in society, yet is endogenously upheld by the population. Moreover, a skewed norm will often be more sustainable than a representative norm. This may explain the skewness of...

Private politics are often introduced by market participants in the absence of public regulation. But when is private politics enough, efficient, or better than administratively costly public regulation? We present a novel framework in which we can study the interaction between regulation,...

We present a two-stage coordination game in which early choices of experts with special interests are observed by followers who move in the second stage. We show that the equilibrium outcome is biased toward the experts' interests even though followers know the distribution of expert interests...