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Decision costs in legislative bargaining: An experimental analysis

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  • Luis Miller

    ()
    (Centre for Experimental Social Sciences, Nuffield College, University of Oxford)

  • Christoph Vanberg

    ()
    (Department of Economics, University of Cambridge)

Abstract

We conduct an experiment to assess the effects of different decision rules on the costs of decision making in a multilateral bargaining situation. Specifically, we compare the amount of costly delay observed in an experimental bargaining game under majority and unanimity rule. Our main finding is that individual subjects are more likely to reject offers under unanimity rule. This increased rejection rate, as well as the requirement that all subjects agree, leads to more costly delay. This result provides empirical support for a classic argument in favor of less-than-unanimity decision rules put forth by Buchanan and Tullock (1962).

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File URL: http://cess-wb.nuff.ox.ac.uk/documents/DP2011/CESS_DP2011_002.pdf
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Bibliographic Info

Paper provided by University of Oxford, Nuffield College in its series Discussion Papers with number 2011002.

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Length: 28 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:cex:dpaper:2011002

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Web page: http://cess-wb.nuff.ox.ac.uk/
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Related research

Keywords: Collective decision-making; Majority rule; Unanimity; Legislative bargaining; Experimental economics;

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References

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  1. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  2. Diermeier, Daniel & Gailmard, Sean, 2006. "Self-Interest, Inequality, and Entitlement in Majoritarian Decision-Making," International Quarterly Journal of Political Science, now publishers, vol. 1(4), pages 327-350, October.
  3. Frechette, Guillaume & Kagel, John H. & Morelli, Massimo, 2005. "Nominal bargaining power, selection protocol, and discounting in legislative bargaining," Journal of Public Economics, Elsevier, vol. 89(8), pages 1497-1517, August.
  4. Guillaume Fr├ęchette & John H. Kagel & Massimo Morelli, 2005. "Behavioral Identification in Coalitional Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Econometrica, Econometric Society, vol. 73(6), pages 1893-1937, November.
  5. John Kagel & Hankyoung Sung & Eyal Winter, 2010. "Veto power in committees: an experimental study," Experimental Economics, Springer, vol. 13(2), pages 167-188, June.
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Cited by:
  1. Vanberg, Christoph & Miller Moya, Luis Miguel, . "Group size and decision rules in legislative bargaining," DFAEII Working Papers DFAE-II;2014-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
  2. Anita Gantner & Kristian Horn & Rudolf Kerschbamer, 2013. "Fair Division in Unanimity Bargaining with Subjective Claims," Working Papers 2013-31, Faculty of Economics and Statistics, University of Innsbruck.

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