Dongguk Coalition and Subcoalition Discussion

Question Description

I’m working on a economics test / quiz prep and need an explanation and answer to help me learn.

This problem follows the model of politics without institutions in comparing
coalition formation in nondemocracies and democracies. Consider a three-member society
{??, ??, ??} with ???? = 7, ???? = 9, and ???? = 15. In both a nondemocracy and a democracy, a
resource is divided among members of the stable ruling coalition in proportion to their
individual power endowments. Coalition formation in a nondemocracy is as in Section 3. In
a democracy, in contrast, any member—even if not a member of the current subcoalition—
can propose a new coalition, which may be any subcoalition of {??,??, ??} (i.e., not
necessarily a subcoalition of the current coalition). Replacement of a coalition with some
subcoalition requires the support of members whose power endowments constitute a
majority of aggregate power in society—in contrast to the process under nondemocracy,
members not lose their (voting) power if left out of a subcoalition. In both a nondemocracy
and a democracy, we further assume that all members bear an infinitesimally small cost
?? > 0 any time a new subcoalition is approved. (a) What is the unique stable coalition in a nondemocracy? Explain the
reason. (b) What is the unique stable coalition in a democracy? Explain the reason.
Is the unique stable coalition larger under nondemocracy or democracy?

Explanation & Answer:
300 Words

Dongguk Coalition

Coalition and Sub coalition

infinitesimally small cost

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