Constitutional monarchy as power sharing

Abstract In the transition to democracy some autocracies transformed republics while others evolved constitutional monarchies. The paper inquires how monarchy is established. It models a hereditary king and liberal challenger who coexist over succession of periods fight for power which brings office rents right decide one’s preferred policy. outcome confrontation uncertain may vary from period period. If wins, he establishes absolute monarchy, but if wins republic. Instead fighting they agree on share policy making responsibilities. Whether agreed depends marginal utilities preferences two actors, sizes benefits policy, rates by discount future, probabilities winning office. contemporary European monarch as ceremonial head state reigns does not govern arises special case general model.