Why do some autocrats establish a ruling party, whereas others do not? The existing literature argues that weak leaders facing a commitment problem have an incentive to create highly institutionalised parties in order to stabilise their ruling coalition. However, empirical research points out that stronger leaders also create ruling parties, which tend to lack institutional strength and be short-lived.
Through a simple formal model and a case study, this paper explains strong leaders’ motivation to create less-institutionalised, short-lived parties. My model introduces two variables to classical leader-elite bargaining model. (1) indivisible benefit from incumbency, which the leaders can exclusively consume and cannot share with ruling elites. This makes the bargaining more difficult while it also increases the leaders’ merit to maintain his post. Thus, the leaders found ruling parties to temporarily deter the elites’ defection, even if the leaders are sure that their ruling coalition will inevitably collapse in the near future. (2) loser’s share, which the elites consume even after the failed rebellion. Many existing models assume that losers in rebellions lose everything, but some leaders lack the willingness or capability to punish defectors. The low loser’s share decreases the elites’ future share, which encourages weak elites to rebel before their bargaining power furthermore goes down. Thus, even strong leaders can face the commitment problem. Through the case study of Georgia, this paper also shows that even less-institutionalised ruling parties can prevent elites from rebelling by empowering potential defectors.