P5: Endogenous institutions

There is now a broad consensus that legal, political and social institutions are essential not only for the wealth of nations, but also for sustainable decision-making. Understanding the emergence of institutions is thus of utmost concern in economics and political science.

This project aims to complement “ideal theorizing” in political philosophy with regard to the emergence of institutions and the mechanism design approach in economics with a perspective on the emergence of institutions within real-world social and political processes.

Objectives

To develop new models of institution formation and to test them in the lab.
To study the assignment of voting weights and decision-making power.
To explore the robustness and evolution of institutions in changing environments.

Supervisors

Suggested Readings

Barberà, S. and M. Jackson (2004): “Choosing How to Choose: Self-Stable Majority Rules and Constitutions,” The Quarterly Journal of Economics, 119, 1011-1048.

Battaglini, M. and L. Mechtenberg (2015): “When Do Conflicting Parties Share Political Power? An Experimental Study,” Journal of Experimental Political Science, 2, 139-151.

Gerber, A., Neitzel, J., and P.C. Wichardt (2013): “Minimum Participation Rules for the Provision of Public Goods,” European Economic Review, 64, 209-222.

Hall, P. and R. C. R. Taylor (1996): “Political Science and the Three New Institutionalisms,” Political Studies, 44, 952-973.

Hayo, B., and S. Voigt (2016): "Explaining constitutional change: The case of judicial independence," International Review of Law and Economics, 48, 1-13.

Kosfeld, M., Okada, A. and A. Riedl (2009): “Institution formation in public goods games,” The American Economic Review, 99, 1335-1355.

March, J. G. and J. P. Olsen (1984): “The New Institutionalism: Organisational Factors in Political Life,” American Political Science Review, 78, 734–749.

Messner, M. and M. K. Polborn (2004): “Voting on Majority Rules,” The Review of Economic Studies, 71, 115-132.

Robinson, J. and R. Torvik (2016): "Endogenous Presidentialism," Journal of the European Economic Association, 14, 907-942.