Constitution and Cronyism
Michael discusses the effectiveness and necessity of constitutions in preventing cronyism. He argues that when there is a shared commitment to the principles written in the Constitution, it can serve as a barrier against rent seeking. However, once people in the state realize they can rewrite the rules to encourage rent seeking, the Constitution loses its power to constrain government actions. This episode explores the implications of this phenomenon on the market for mergers and acquisitions.In this clip
From this podcast
EconTalk
Michael Munger on Crony Capitalism
Related Questions
What is the role of constitutions in the episode Michael Munger on Choosing in Groups and the clip The Evolution of Rules?
What is the role of constitutions in the episode Does Market Failure Justify Government Intervention? (with Michael Munger) and the clip Expertise and Authority in relation to the episode Michael Munger on Choosing in Groups and the clip The Evolution of Rules?