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A bargaining model of endogenous procedures

Author

Listed:
  • Daniel Diermeier

    (University of Chicago
    Canadian Institute for Advanced Research (CIFAR))

  • Carlo Prato

    (Columbia University)

  • Razvan Vlaicu

    (Inter-American Development Bank)

Abstract

This paper endogenizes policymaking procedures in a multilateral bargaining framework. A procedure specifies players’ proposal power in bargaining over one-dimensional policies. In procedural bargaining players internalize the procedures’ effects on subsequent policy bargaining. In policy bargaining players’ utilities are continuous, strictly concave, and order-restricted. The paper provides equilibrium characterization, existence, and uniqueness results for this two-tier bargaining model. Although the procedural choice set is multidimensional, sequentially rational procedures feature “limited power sharing” and admit a total order. In equilibrium, endogenous procedures and policies are strategic complements.

Suggested Citation

  • Daniel Diermeier & Carlo Prato & Razvan Vlaicu, 2016. "A bargaining model of endogenous procedures," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 985-1012, December.
    • Handle: RePEc:spr:sochwe:v:47:y:2016:i:4:d:10.1007_s00355-016-1002-z
    DOI: 10.1007/s00355-016-1002-z
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    References listed on IDEAS

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    Cited by:

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    2. Marina Azzimonti & Laura Karpuska & Gabriel Mihalache, 2023. "Bargaining Over Taxes And Entitlements In The Era Of Unequal Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(3), pages 893-941, August.
    3. Jeon, Jee Seon & Hwang, Ilwoo, 2022. "The emergence and persistence of oligarchy: A dynamic model of endogenous political power," Journal of Economic Theory, Elsevier, vol. 201(C).
    4. Kim, Duk Gyoo, 2019. "Recognition without replacement in legislative bargaining," Games and Economic Behavior, Elsevier, vol. 118(C), pages 161-175.
    5. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    6. Marina Azzimonti & Gabriel P. Mihalache & Laura Karpuska, 2020. "Bargaining over Taxes and Entitlements," NBER Working Papers 27595, National Bureau of Economic Research, Inc.
    7. Thomas Choate & John A Weymark & Alan E Wiseman, 2020. "Legislative bargaining and partisan delegation," Journal of Theoretical Politics, , vol. 32(2), pages 289-311, April.

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