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Players' Patience and Equilibrium Payoffs in the Baron-Ferejohn Model

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Author Info
Tomohiko Kawamori () (Graduate School of Economics, University of Tokyo)
Abstract

This paper investigates a generalized Baron-Ferejohn model with different discount factors, different recognition probabilities and q-majority rule. In the paper, it is shown that if players are sufficiently patient, recognition probabilities are similar and the voting rule is not unanimous, each player's equilibrium payoff is inversely proportional to the ratio of the player's discount factor to the harmonic mean of all players' discount factors. This result implies the followings: (i) A less patient player obtains a greater payoff; (ii) As a player slightly becomes more patient, her payoff becomes smaller; (iii) The equilibrium payoffs do not depend on recognition probabilities; and (iv) They do not also depend on q.

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File URL: http://economicsbulletin.vanderbilt.edu/2005/volume3/EB-05C70027A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 3 (2005)
Issue (Month): 43 ()
Pages: 1-5
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:3:y:2005:i:43:p:1-5

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Related research
Keywords: Baron-Ferejohn model (Legislative bargaining); Equilibrium payoff; Players' patience (discount factor); q-majority rule;

Find related papers by JEL classification:
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D7 - Microeconomics - - Analysis of Collective Decision-Making

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Harrington, Joseph E, Jr, 1990. " The Role of Risk Preferences in Bargaining When Acceptance of a Proposal Requires Less than Unanimous Approval," Journal of Risk and Uncertainty, Springer, vol. 3(2), pages 135-54, June.
  2. Eraslan, Hulya, 2002. "Uniqueness of Stationary Equilibrium Payoffs in the Baron-Ferejohn Model," Journal of Economic Theory, Elsevier, vol. 103(1), pages 11-30, March. [Downloadable!] (restricted)
  3. Marco A. Haan & Peter Kooreman, 2003. "How majorities can lose the election Another voting paradox," Social Choice and Welfare, Springer, vol. 20(3), pages 509-522, 06. [Downloadable!] (restricted)
  4. Piccione, Michele & Rubinstein, Ariel, 2004. "The curse of wealth and power," Journal of Economic Theory, Elsevier, vol. 117(1), pages 119-123, July. [Downloadable!] (restricted)
  5. Yildirim, Huseyin, 2005. "Proposal Power and Majority Rule in Multilateral Bargaining with Costly Recognition," Working Papers 05-10, Duke University, Department of Economics. [Downloadable!]
  6. Banks, Jeffrey S. & Duggan, John, 1999. "A Bargaining Model of Collective Choice," Working Papers 1053, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maria Montero, 2005. "Altruism, Spite and Competition in Bargaining Games," Game Theory and Information 0512004, EconWPA. [Downloadable!]
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