| Abstract: | Competition is not only a prerequisite for the successful workingof economics but also of political coordination systems. Weargue that popular referenda and federalism are the key factorsin maintaining competition in the political arena. Competitiveeconomic or political markets require free entry and exit andthe absence of regulations that prevent suppliers from beingsuccessful with the best product-be it goods or services inthe form of policies-and prevent citizens from choosing freely. |
