<P> The aristocratic version of this theory is the classical elite theory, which is based on two ideas: </P> <Ol> <Li> Power lies in position of authority in key economic and political institutions . </Li> <Li> The psychological difference that sets elites apart is that they have personal resources, for instance intelligence and skills, and a vested interest in the government; while the rest are incompetent and do not have the capabilities of governing themselves, the elite are resourceful and strive to make the government work . For in reality, the elite would have the most to lose in a failed state . </Li> </Ol> <Li> Power lies in position of authority in key economic and political institutions . </Li> <Li> The psychological difference that sets elites apart is that they have personal resources, for instance intelligence and skills, and a vested interest in the government; while the rest are incompetent and do not have the capabilities of governing themselves, the elite are resourceful and strive to make the government work . For in reality, the elite would have the most to lose in a failed state . </Li>

Who has studied the formation of elites within political parties