The Virtue of Installing Veto Players

Abstract

This paper shows that the wisdom of many Founding Fathers of installing separate legislation powers to prevent each other from corrupt practices is at most only partially justified. Given the same culture, a political institution with veto players to counterbalance its multi-party legislature enables its legislative coalitions to extract larger amounts of bribes from interest groups than the one without such counterbalance veto players . This finding explains the rampant scandals of colossal bribes in regimes where an authoritarian president, prime minister, or party leader of the chronical dominant party, or a bicameral system is prevalent. Technically, this paper extends the weighted value allocation under a preset coalitional structure of the players to an apex game.