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On the efficiency of equilibria in a legislative bargaining model with particularistic and collective goods

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  • Daniel Cardona
  • Antoni Rubí-Barceló

Abstract

This study analyzes the efficiency of equilibria in a multilateral bargaining game in which a legislature divides its budget among collective and particularistic goods. In order to disentangle the causes of inefficiency, we extend the model of Volden and Wiseman (Am Polit Sci Rev 101:79–92, 2007 ) by considering quasi-linear utility functions, and consensus requirements ranging from simple majority to unanimity. Although unanimous agreements can be reached under weaker consensus requirements, we show that (Pareto) inefficiency is associated with non-unanimous consent. We also study how (i) the endogenous selection of the legislature’s size or (ii) a sequential choice of collective and particularistic spending eliminates or attenuates the inefficiency problem. Copyright Springer Science+Business Media New York 2014

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  • Daniel Cardona & Antoni Rubí-Barceló, 2014. "On the efficiency of equilibria in a legislative bargaining model with particularistic and collective goods," Public Choice, Springer, vol. 161(3), pages 345-366, December.
    • Handle: RePEc:kap:pubcho:v:161:y:2014:i:3:p:345-366
    DOI: 10.1007/s11127-014-0204-0
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    Cited by:

    1. Daniel Cardona & Antoni Rubí-Barceló, 2019. "Investments, Positive Externalities, and Majority Bargaining," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 175(4), pages 664-691.

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    More about this item

    Keywords

    Legislative bargaining; Quota rules; Public good; Pork barrel; Pareto efficiency; C78; D7;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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