Changes

This is a general equilibrium model. There are winners and losers, but it is unclear who will be a winner ex ante. This uncertainty leads workers to vote against reforms that may ex post provide benefits to a majority, and for reforms that may ex post provide benefits to only a minority. In an extension that allows for reforms to be overturned, this second case is eliminated. The basic problem is that ex ante it is not clear, to an individual, that an individual will be in the benefit recieving majority, leading to a status quo bias.