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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. Siddhartha Bandyopadhyay & Mandar Oak, 2004. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Working Papers 2004.98, Fondazione Eni Enrico Mattei.
  2. Jackson, Matthew O. & Moselle, Boaz, 2002. "Coalition and Party Formation in a Legislative Voting Game," Journal of Economic Theory, Elsevier, vol. 103(1), pages 49-87, March.
  3. Marc Debus, 2009. "Pre-electoral commitments and government formation," Public Choice, Springer, vol. 138(1), pages 45-64, January.
  4. 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.
  5. Morelli, Massimo, 1998. "Party Formation and Policy Outcomes Under Different Electoral Systems," Staff General Research Papers 1242, Iowa State University, Department of Economics.
  6. Persson, Torsten & Roland, Gerard & Tabellini, Guido, 2007. "Electoral Rules and Government Spending in Parliamentary Democracies," International Quarterly Journal of Political Science, now publishers, vol. 2(2), pages 155-188, May.
  7. Siddhartha Bandyopadhyay & Mandar Oak, 2006. "Coalition Governments in a Model of Parliamentary Democracy," Working Papers 2006.83, Fondazione Eni Enrico Mattei.
  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. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  10. 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.
  11. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
  12. Siddhartha Bandyopadhyay & Kalyan Chatterjee, 2006. "Coalition Theory and its Applications: A Survey," Economic Journal, Royal Economic Society, vol. 116(509), pages F136-F155, 02.
  13. Levy, Gilat, 2004. "A model of political parties," Journal of Economic Theory, Elsevier, vol. 115(2), pages 250-277, April.
  14. Martin J. Osborne & Rabee Tourky, 2002. "Party Formation Incollective Decision-Making," Department of Economics - Working Papers Series 844, The University of Melbourne.
  15. Okada, Akira, 2011. "Coalitional bargaining games with random proposers: Theory and application," Games and Economic Behavior, Elsevier, vol. 73(1), pages 227-235, September.
  16. 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.
  17. 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.
  18. 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.
  19. 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.
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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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