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Pre-Electoral Coalitions and Post-Election Bargaining

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  • Siddhartha Bandyopadhyay
  • Kalyan Chatterjee
  • Tomas Sjostrom

Abstract

We study a game-theoretic model where political parties can form coalitions both before and after the elections. Before election, coalitions can commit to a seat-sharing arrangement, but not to a policy or to a division of rents from office; coalition members are free to break up and join other coalitions after the election. Equilibrium pre-electoral coalitions are not necessarily made up of the most ideologically similar parties, and they form under proportional representation as well as plurality rule. They do so to avoid "splitting the vote", but also because seat-sharing arrangements will influence the ex post bargaining and coalition formation.

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Bibliographic Info

Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 09-10r.

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Length: 41 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:bir:birmec:09-10r

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Web page: http://www.economics.bham.ac.uk
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Keywords: Ex ante coalition; ex post bargaining;

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References

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  1. Martin J. Osborne & Al Slivinksi, 1995. "A Model of Political Competition with Citizen-Candidates," Department of Economics Working Papers 1995-01, McMaster University.
  2. Diermeier, Daniel & Merlo, Antonio, 1998. "Government turnover in parliamentary democracies," Bulletins 7453, University of Minnesota, Economic Development Center.
  3. Siddhartha Bandyopadhyay & Mandar Oak, 2006. "Coalition Governments in a Model of Parliamentary Democracy," Working Papers 2006.83, Fondazione Eni Enrico Mattei.
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  7. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
  8. Eraslan, Hulya & Merlo, Antonio, 2002. "Majority Rule in a Stochastic Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 103(1), pages 31-48, March.
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  16. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
  17. Siddhartha Bandyopadhyay & Kalyan Chatterjee, 2006. "Coalition Theory and its Applications: A Survey," Economic Journal, Royal Economic Society, vol. 116(509), pages F136-F155, 02.
  18. Siddhartha Bandyopadhyay & Mandar Oak, 2004. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Working Papers 2004.98, Fondazione Eni Enrico Mattei.
  19. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
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Cited by:
  1. Francesco Giovannoni & Daniel J. Seidmann, 2008. "Corruption and Power in Democracies," The Centre for Market and Public Organisation 08/192, Department of Economics, University of Bristol, UK.
  2. Daniel Diermeier & Pohan Fong, 2011. "Legislative Bargaining with Reconsideration," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 947-985.

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