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Agenda-Setter Power Dynamics: Learning in Multi-Issue Bargaining

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  • Bowen, T. Renee
  • Krasa, Stefan
  • Hwang, Ilwoo

Abstract

We study a dynamic bargaining model between a fixed agenda-setter and responder over successive issues. If the responder rejects the setter’s proposal, the setter can attempt to assert her will to implement her ideal and will succeed with a probability that depends on her “personal power†. The players learn about the setter’s power as gridlock persists. Gridlock occurs when the setter’s perceived power is either too high or too low, and the players reach compromise in an intermediate interval of beliefs. The presence of “difficult†issues can induce more compromise as the players have incentives to avoid learning.

Suggested Citation

  • Bowen, T. Renee & Krasa, Stefan & Hwang, Ilwoo, 2020. "Agenda-Setter Power Dynamics: Learning in Multi-Issue Bargaining," CEPR Discussion Papers 15406, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:15406
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    References listed on IDEAS

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    More about this item

    Keywords

    Bargaining; Power; Gridlock; Learning;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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