Consider a group of isolated or autarkic regions. If the regions from a federation, on expects to see greater efficiency in production at the cost of reduced local control over the distribution of consumption. Under what circumstances is this tradoff even potentially beneficial to all regions?

A self-enforcing equilibrium account of legislative party organization in the context of the standard legislative bargaining model demonstrates how a member of a party would overcome the temptations to violate a party's agreement to stick together on legislative matters in the absence of...