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Demand Commitment in Legislative Bargaining

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  • MONTERO, MARIA
  • VIDAL-PUGA, JUAN J.

Abstract

Morelli (1999) provides a model of government formation in which the parties make payoff demands and the order of moves is chosen by the leading party. Morelli's main proposition states that the ex post distribution of payoffs inside the coalition that forms is proportional to the distribution of relative ex ante bargaining power. We provide a counterexample in which the leading party is able to obtain the entire payoff; furthermore, there are coalitions for which proportional payoff division does not occur for any order of moves.

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  • Montero, Maria & Vidal-Puga, Juan J., 2007. "Demand Commitment in Legislative Bargaining," American Political Science Review, Cambridge University Press, vol. 101(4), pages 847-850, November.
    • Handle: RePEc:cup:apsrev:v:101:y:2007:i:04:p:847-850_07
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    Cited by:

    1. Breitmoser, Yves & Tan, Jonathan H.W., 2013. "Reference dependent altruism in demand bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 127-140.
    2. Maria Montero & Juan Vidal-Puga, 2012. "A Violation of Monotonicity in a Noncooperative Setting," Discussion Papers 2012-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    3. Breitmoser, Yves, 2011. "Binomial menu auctions in government formation," MPRA Paper 28576, University Library of Munich, Germany.
    4. Yves Breitmoser, 2009. "Demand commitments in majority bargaining or how formateurs get their way," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(2), pages 183-191, June.
    5. Johanna Goertz, 2011. "Omnibus or not: package bills and single-issue bills in a legislative bargaining game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(3), pages 547-563, April.
    6. Chen, Ying & Eraslan, Hülya, 2013. "Rhetoric in legislative bargaining with asymmetric information," Discussion Paper Series In Economics And Econometrics 1309, Economics Division, School of Social Sciences, University of Southampton.
    7. Breitmoser, Yves & Tan, Jonathan H.W., 2011. "Ultimata bargaining: generosity without social motives," MPRA Paper 33613, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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