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Strategic Power Revisited

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  • Stefan Napel
  • Mika Widgrén

Abstract

Traditional power indices ignore preferences and strategic interaction. Equilibrium analysis of particular non-cooperative decision procedures is unsuitable for normative analysis and assumes typically unavailable information. These points drive a lingering debate about the right approach to power analysis. A unified framework that works both sides of the street is developed here. It rests on a notion of a posteriori power which formalizes players' marginal impact to outcomes in cooperative and non-cooperative games, for strategic interaction and purely random behaviour. Taking expectations with respect to preferences, actions, and procedures then defines a meaningful a priori measure. Established indices turn out to be special cases.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-05/736.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 736.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_736

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Related research

Keywords: power indices; spatial voting; equilibrium analysis; decision procedures;

References

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  1. Annick Laruelle & Mika Widgrén, 1998. "Is the allocation of voting power among EU states fair?," Public Choice, Springer, vol. 94(3), pages 317-339, March.
  2. Hosli, Madeleine O., 1993. "Admission of European Free Trade Association states to the European Community: effects on voting power in the European Community Council of Ministers," International Organization, Cambridge University Press, vol. 47(04), pages 629-643, September.
  3. Guillermo Owen, 1972. "Multilinear Extensions of Games," Management Science, INFORMS, vol. 18(5-Part-2), pages 64-79, January.
  4. Sven Hansson, 1996. "Social choice with procedural preferences," Social Choice and Welfare, Springer, vol. 13(2), pages 215-230, April.
  5. Mika Widgrén & Stefan Napel, 2001. "Inferior players in simple games," International Journal of Game Theory, Springer, vol. 30(2), pages 209-220.
  6. Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
  7. Moser, Peter, 1997. " A Theory of the Conditional Influence of the European Parliament in the Cooperation Procedure," Public Choice, Springer, vol. 91(3-4), pages 333-50, June.
  8. Sergiu Hart & Andreu Mas-Colell, 1994. "Bargaining and value," Economics Working Papers 114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
  9. Philip Straffin, 1977. "Homogeneity, independence, and power indices," Public Choice, Springer, vol. 30(1), pages 107-118, June.
  10. Baldwin, Richard & Berglöf, Erik & Giavazzi, Francesco & Widgrén, Mika, 2000. "EU Reforms for Tomorrow’s Europe," CEPR Discussion Papers 2623, C.E.P.R. Discussion Papers.
  11. Moshé Machover & Dan S. Felsenthal, 2001. "The Treaty of Nice and qualified majority voting," Social Choice and Welfare, Springer, vol. 18(3), pages 431-464.
  12. Leech, Dennis, 2002. " Designing the Voting System for the Council of the European Union," Public Choice, Springer, vol. 113(3-4), pages 437-64, December.
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Citations

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Cited by:
  1. Mika Widgren, 2003. "Power in the Design of Constitutional Rules," European Economy Group Working Papers 23, European Economy Group.
  2. Lukach, R. & Plasmans, J.E.J., 2002. "Measuring Knowledge Spillovers using Patent Citations: Evidence from the Belgian Firm's Data," Open Access publications from Tilburg University urn:nbn:nl:ui:12-92281, Tilburg University.
  3. Mika Widgrén, 2003. "Enlargements and the Principles of Designing EU - Decision-Making Procedures," CESifo Working Paper Series 903, CESifo Group Munich.
  4. Manfred Holler & Stefan Napel, 2005. "Local monotonicity of power: Axiom or just a property?," Quality & Quantity: International Journal of Methodology, Springer, vol. 38(5), pages 637-647, January.

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