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Respecting entitlements in legislative bargaining: A matter of preference or necessity?

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  • Anita Gantner
  • Regine Oexl

Abstract

We investigate whether fairness concerns overrule strategic behaviour in legislative bargaining with entitlements. In a lab experiment, we vary bargaining power by using either majority rule or dictator rule to implement a division. We apply coarse measures in order to assess whether entitlements are respected. Our results show that with experience over one third of proposers make “extreme” offers, assigning at most 10% of the surplus to partners whose consent is not needed under the respective rule. Having observed extreme outcomes in the past increases the likelihood of own extreme proposals. Overall, we find significant limitations in the acknowledgment for others' entitlements, in particular for groups in which individual contributions differ. Respecter les droits dans les négociations relatives à la législation – une question de préférence ou de nécessité? Nous examinons si les préoccupations en matière d'équité l'emportent sur les comportements stratégiques dans le cadre de négociations relatives à la législation lorsqu'il est question de droits. Dans une expérience en laboratoire, nous modifions le pouvoir de négociation en utilisant soit la règle majoritaire, soit la dictature pour instaurer une division. Nous appliquons des mesures approximatives afin d'évaluer si les droits sont respectés. Nos résultats montrent que, une fois qu'ils ont acquis une certaine l'expérience, plus du tiers des proposants font des offres «$$ \mbox{\fontencoding{T1}\fontfamily{cmr}\selectfont\char"13} $$ extrêmes »$$ \mbox{\fontencoding{T1}\fontfamily{cmr}\selectfont\char"14} $$, attribuant au plus 10% de l'excédent à des partenaires dont le consentement n'est pas requis en vertu de la règle respective. Le fait d'avoir déjà observé des résultats extrêmes augmente la probabilité de faire soi‐même des propositions extrêmes. De façon globale, nous constatons des limites importantes à la reconnaissance des droits des autres, surtout au sein des groupes où les contributions individuelles diffèrent.

Suggested Citation

  • Anita Gantner & Regine Oexl, 2023. "Respecting entitlements in legislative bargaining: A matter of preference or necessity?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 490-519, May.
  • Handle: RePEc:wly:canjec:v:56:y:2023:i:2:p:490-519
    DOI: 10.1111/caje.12659
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