• 1. Introduction
  • 2. The model
  • 3. The first-best solution
  • 4. Autarky
  • 4.1 The parties investment decisions under holdup
  • 4.2 The market equilibrium
  • 4.3 Institutional design with an efficient political process
  • 5. Competition of systems with no capture
  • 5.1 The market equilibrium with trade
  • 5.2 Institutional design with systems competition
  • 6. Capture by labor
  • 6.1 Autarky
  • 6.2 Systems competition with capture
  • 7. Conclusion