Proposal Power and Majority Rule in Multilateral Bargaining with Costly Recognition
AbstractThis paper studies a sequential bargaining model in which, as in the rent-seeking literature, agents expend resources to be the proposer, and agreement requires affirmative votes of either all agents or a subset of them. By focusing on the Stationary Subgame Perfect Equilibrium, it is found that (1) under the unanimity voting rule, all agents expend the same amount of resources, regardless of their time preferences. (2) Under a nonunanimity rule however, more patient agents expend greater resources, and are thus more likely to propose. Yet, they can end up with a lower payoff than less patient agents. (3) While, under the unanimity rule, the social cost decreases in group heterogeneity, it can increase under a nonunanimity rule. (4) Bargaining as a coalition pays off only if the coalition is large enough. (5) When the surplus is endogenous to the group, groups that require more consensus in their distribution are more likely to expand; and (6) when bargaining delays are possible, costly recognition induces agents to reach an agreement too soon from the social standpoint, even under the unanimity rule..
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 05-10.
Length: 42 pages
Date of creation: 2005
Date of revision:
Contact details of provider:
Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-23 (All new papers)
- NEP-CDM-2005-10-27 (Collective Decision-Making)
- NEP-PBE-2005-10-26 (Public Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tomohiko Kawamori, 2005. "Players' Patience and Equilibrium Payoffs in the Baron-Ferejohn Model," Economics Bulletin, AccessEcon, vol. 3(43), pages 1-5.
- repec:ebl:ecbull:v:3:y:2005:i:43:p:1-5 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics Webmaster).
If references are entirely missing, you can add them using this form.