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Endogenous agenda formation processes with the one-deviation property

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    (Helskinki Center of Economic Research, University of Helsinki)

Abstract

We study collective choice via an endogenous agenda setting process. At each stage, a status quo is implemented unless it is replaced by a majority (winning coalition) with a new status quo outcome. The process continues until the prevailing status quo is no longer challenged. We impose a one-time deviation restriction on the feasible policy processes, reflecting farsightedness of voters. The key feature of the solution is history dependence. The existence of the solution is proven by iterating a version of the uncovered set. We show that the resulting fixed point is the largest set of outcomes that can be implemented via any policy process that meets the one-deviation restriction. Finally, we relate our solution to a concrete noncooperative model, and show that it can be interpreted as a refinement of the solution of Bernheim and Slavov (2009) in the context of repeated voting, and of the solution of Konishi and Ray (2003) and Vartiainen (2011) in the context of coalition formation.

Suggested Citation

  • ,, 2014. "Endogenous agenda formation processes with the one-deviation property," Theoretical Economics, Econometric Society, vol. 9(1), January.
  • Handle: RePEc:the:publsh:1225
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    Cited by:

    1. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    2. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    3. Salvador Barberà & Anke Gerber, 2022. "Deciding On What To Decide," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 37-61, February.
    4. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    5. Salvador Barberà & Anke Gerber, 2017. "Deciding on what to Decide," Working Papers 973, Barcelona School of Economics.

    More about this item

    Keywords

    Voting; history dependence; one-deviation principle; covering;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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