Appendix B for “Political Selection and Persistence of Bad Gov- ernments”: Omitted Proofs (Not for Publication)

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To obtain a contradiction, suppose that there is a cycle; this implies that so that there are q ≥ 2 different governments H1, . . . ,Hq such that φ (Hj) = Hj+1 for all 1 ≤ j < q, and φ (Hq) = H1. Without loss of generality, let H1 be the least competent of these governments. Take H = φ (H2) (if q > 2 then H = H3 and if q = 2 then H = H1). As φ is a political equilibrium, Vi (H) > Vi (H2) holds for a winning coalition in H2. But winning coalitions are the same for all governments, so Vi (H) > Vi (H2) holds for a winning coalition in H1. Moreover, by Assumption 1, Vi (H) > wi (H1) / (1− β) for all players except, perhaps, members of H1 (as H1 is the least competent government). However, the existence of such alternative H contradicts that φ is a political equilibrium, as the condition (ii) of Definition 1 is violated for government

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تاریخ انتشار 2010