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Endogenous Ignorance: The Persistence of Institutional Traps in Captured States

Authors: Tobias Casco; Mariano Cordeiro;

Endogenous Ignorance: The Persistence of Institutional Traps in Captured States

Abstract

Why do formal democratic institutions frequently fail to discipline corrupt politicians, allowing systemic rent-seeking to persist despite regular elections? This article develops a gametheoretic model to explain how state capture persists as an endogenous institutional trap. Integrating probabilistic voting and rational ignorance, we demonstrate how "institutional awareness" acts as an underlying constraint on electoral accountability. Through this framework, we make three primary contributions to constitutional political economy. First, we show that democratic accountability is not guaranteed by the formal rules of elections alone; it requires a critical mass of public information to function. Second, we demonstrate that when an elite's capacity for information manipulation interacts with a politician's rent-seeking, the political system can fall into a self-reinforcing "middle-awareness trap." In this stable equilibrium, gradual reforms are ineffective, and escaping systemic capture requires a discontinuous institutional shock. Finally, we provide a formal proof that this capture equilibrium acts as a negative-sum outcome that rational agents sustain under existing electoral rules, destroying social surplus to obscure private rents. Ultimately, the model explains how the structural manipulation of information can neutralize the formal constitutional mechanisms of democracy.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
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