rising political aspirations of the poor, which erodes the power of the elite. The paper derives conditions under which (a …) the elite will redistribute to the point of equality with the disadvantaged; (b) conditions under which the disadvantaged … are subject to extreme forms of extraction by the elite; as well as (c) the range of intermediate redistributive activity …

How can office-seeking politicians or managers be aligned with social welfare or firm welfare, given that such agents … have a suboptimal incentive to cater to majority preferences in situations with low participation costs and to elite … preferences in situations with high participation costs? In the for-profit firm, the primary elite-majority bargain to reduce …