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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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Postal: Edgbaston, Birmingham, B15 2TT
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. Torsten Persson & Gerard Roland & Guido Tabellini, 2005. "Electoral Rules and Government Spending in Parliamentary Democracies," Levine's Working Paper Archive 784828000000000024, David K. Levine.
  2. Massimo Morelli, 2001. "Party Formation and Policy Outcomes under Different Electoral Systems," Economics Working Papers 0018, Institute for Advanced Study, School of Social Science.
  3. Austen-Smith, David & Banks, Jeffrey., 1987. "Elections, Coalitions, and Legislative Outcomes," Working Papers 643, California Institute of Technology, Division of the Humanities and Social Sciences.
  4. Besley, Timothy & Coate, Stephen, 1997. "An Economic Model of Representative Democracy," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 85-114, February.
  5. Osborne, Martin J & Slivinski, Al, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 65-96, February.
  6. Martin J Osborne & Rabee Tourky, 2010. "Party formation in collective decision-making," Levine's Working Paper Archive 506439000000000050, David K. Levine.
  7. Bandyopadhyay, Siddhartha & Oak, Mandar P., 2008. "Coalition governments in a model of parliamentary democracy," European Journal of Political Economy, Elsevier, vol. 24(3), pages 554-561, September.
  8. Daniel Diermeier & Antonio Merlo, 1998. "Government Turnover in Parliamentary Democracies," Discussion Papers 1232, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  9. Okada, Akira, 2011. "Coalitional bargaining games with random proposers: Theory and application," Games and Economic Behavior, Elsevier, vol. 73(1), pages 227-235, September.
  10. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
  11. Jackson, Matthew O. & Moselle, Boaz, 1998. "Coalition and Party Formation in a Legislative Voting Game," Working Papers 1036, California Institute of Technology, Division of the Humanities and Social Sciences.
  12. Daniel Diermeier & Antoni Merlo, 1999. "An Empirical Investigation of Coalitional Bargaining Procedures," Discussion Papers 1267, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  13. Siddhartha Bandyopadhyay & Kalyan Chatterjee, 2006. "Coalition Theory and its Applications: A Survey," Economic Journal, Royal Economic Society, vol. 116(509), pages F136-F155, 02.
  14. Marc Debus, 2009. "Pre-electoral commitments and government formation," Public Choice, Springer, vol. 138(1), pages 45-64, January.
  15. Mandar Oak & Siddhartha Bandyopadhyay, 2004. "Party Formation And Coalitional Bargaining In A Model Of Proportional Representation," Royal Economic Society Annual Conference 2004 37, Royal Economic Society.
  16. Levy, Gilat, 2004. "A model of political parties," Journal of Economic Theory, Elsevier, vol. 115(2), pages 250-277, April.
  17. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  18. 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.
  19. 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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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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