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Gaining power through enlargement: Strategic foundations and experimental evidence

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  • Drouvelis, Michalis
  • Montero, Maria
  • Sefton, Martin

Abstract

Power indices suggest that adding new members to a voting body may affect the balance of power between the original members even if their number of votes and the decision rule remain constant. Some of the original members may actually gain even if voters are bargaining over a fixed budget. We show that this phenomenon can occur as an equilibrium of a non-cooperative bargaining game based on the Baron and Ferejohn (1989) model of legislative bargaining. We implement this game in the laboratory and find that power can be gained by adding new members as the theory predicts.

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  • Drouvelis, Michalis & Montero, Maria & Sefton, Martin, 2010. "Gaining power through enlargement: Strategic foundations and experimental evidence," Games and Economic Behavior, Elsevier, vol. 69(2), pages 274-292, July.
    • Handle: RePEc:eee:gamebe:v:69:y:2010:i:2:p:274-292
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    Cited by:

    1. Miller, Luis & Montero, Maria & Vanberg, Christoph, 2018. "Legislative bargaining with heterogeneous disagreement values: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 107(C), pages 60-92.
    2. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    3. 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.
    4. Tremewan, James & Vanberg, Christoph, 2018. "Voting rules in multilateral bargaining: using an experiment to relax procedural assumptions," Working Papers 0651, University of Heidelberg, Department of Economics.
    5. Eraslan, Hülya & McLennan, Andrew, 2013. "Uniqueness of stationary equilibrium payoffs in coalitional bargaining," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2195-2222.
    6. Nunnari, Salvatore & Zapal, Jan, 2016. "Gambler's fallacy and imperfect best response in legislative bargaining," Games and Economic Behavior, Elsevier, vol. 99(C), pages 275-294.
    7. Ke, Changxia & Morath, Florian & Newell, Anthony & Page, Lionel, 2022. "Too big to prevail: The paradox of power in coalition formation," Games and Economic Behavior, Elsevier, vol. 135(C), pages 394-410.
    8. Andrzej Baranski & Rebecca Morton, 2022. "The determinants of multilateral bargaining: a comprehensive analysis of Baron and Ferejohn majoritarian bargaining experiments," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1079-1108, September.
    9. de Groot Ruiz, Adrian & Ramer, Roald & Schram, Arthur, 2016. "Formal versus informal legislative bargaining," Games and Economic Behavior, Elsevier, vol. 96(C), pages 1-17.
    10. Breitmoser, Yves & Tan, Jonathan H.W., 2014. "Reference Dependent Altruism," MPRA Paper 52774, University Library of Munich, Germany.
    11. Maaser, Nicola & Paetzel, Fabian & Traub, Stefan, 2019. "Power illusion in coalitional bargaining: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 117(C), pages 433-450.
    12. Kim, Chulyoung & Kim, Sang-Hyun & Lee, Jinhyuk & Lee, Joosung, 2022. "Strategic alliances in a veto game: An experimental study," European Journal of Political Economy, Elsevier, vol. 75(C).
    13. Denise Laroze & David Hugh-Jones & Arndt Leininger, 2015. "The impact of group identity on coalition formation," University of East Anglia School of Economics Working Paper Series 2015-03, School of Economics, University of East Anglia, Norwich, UK..
    14. Bosman, R. & Maier, P. & Sadiraj, V. & van Winden, F., 2013. "Let me vote! An experimental study of vote rotation in committees," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 32-47.
    15. Alexander Mayer, 2018. "Luxembourg in the Early Days of the EEC: Null Player or Not?," Games, MDPI, vol. 9(2), pages 1-12, May.
    16. Miller, Luis & Vanberg, Christoph, 2015. "Group size and decision rules in legislative bargaining," European Journal of Political Economy, Elsevier, vol. 37(C), pages 288-302.
    17. Wagner, Alexander K. & Granic, Dura-Georg, 2017. "Tie-Breaking Power in Committees," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168187, Verein für Socialpolitik / German Economic Association.
    18. Nicola Maaser & Fabian Paetzel & Stefan Traub, 2022. "Gender and Nominal Power in Multilateral Bargaining," Games, MDPI, vol. 13(1), pages 1-25, January.
    19. Miller , Luis & Vanberg, Christoph, 2014. "Group size and decision rules in legislative bargaining," Working Papers 0558, University of Heidelberg, Department of Economics.
    20. Agranov, Marina & Tergiman, Chloe, 2014. "Communication in multilateral bargaining," Journal of Public Economics, Elsevier, vol. 118(C), pages 75-85.
    21. Breitmoser, Yves & Tan, Jonathan H.W., 2020. "Why should majority voting be unfair?," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 281-295.
    22. Matthias Weber, 2014. "Choosing Voting Systems behind the Veil of Ignorance: A Two-Tier Voting Experiment," Tinbergen Institute Discussion Papers 14-042/I, Tinbergen Institute.
    23. Changxia Ke & Florian Morath & Anthony Newell & Lionel Page, 2016. "Too big to prevail: Coalition formations in the presence of a superpower," QuBE Working Papers 044, QUT Business School.
    24. Vespa, Emanuel I., 2016. "Malapportionment and multilateral bargaining: An experiment," Journal of Public Economics, Elsevier, vol. 133(C), pages 64-74.
    25. 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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