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Party Formation And Coalitional Bargaining In A Model Of Proportional Representation

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  • Mandar Oak
  • Siddhartha Bandyopadhyay

Abstract

We study a game theoretic model of a parliamentary democracy under proportional representation where `citizen candidates' form parties, voting occurs and governments are formed. We study the coalition governments that emerge as functions of the parties' seat shares, the size of the rents from holding office and their ideologies. We show that governments may be minimal winning, minority or surplus. Moreover, coalitions may be `disconnected'. We then look at how the coalition formation game affects the incentives for party formation. Our model explains the diverse electoral outcomes seen under proportional representation and integrates models of political entry with models of coalitional bargaining.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 37.

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Date of creation: 17 Sep 2004
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Handle: RePEc:ecj:ac2004:37

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  1. Massimo Morelli, 2001. "Party Formation and Policy Outcomes under Different Electoral Systems," Economics Working Papers 0018, Institute for Advanced Study, School of Social Science.
  2. Daniel Diermeier & Antonio Merlo, 1998. "Government Turnover in Parliamentary Democracies," Discussion Papers 1232, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Daniel Diermeier & Michael Keane & Antonio Merlo, 2002. "A Political Economy Model of Congressional Careers," PIER Working Paper Archive 04-037, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Sep 2004.
  4. Hamlin, Alan & Hjortlund, Michael, 2000. " Proportional Representation with Citizen Candidates," Public Choice, Springer, vol. 103(3-4), pages 205-30, June.
  5. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  6. 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.
  7. Martin J. Osborne & Rabee Tourky, 2002. "Party Formation Incollective Decision-Making," Department of Economics - Working Papers Series 844, The University of Melbourne.
  8. Ignacio OrtuÓo-OrtÎn, 1997. "A spatial model of political competition and proportional representation," Social Choice and Welfare, Springer, vol. 14(3), pages 427-438.
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Cited by:
  1. Bandyopadhyay, Siddhartha & Chatterjee, Kalyan & Sj�str�m, Tomas, 2011. "Pre-electoral Coalitions and Post-election Bargaining," International Quarterly Journal of Political Science, now publishers, vol. 6(1), pages 1-53, August.
  2. Bandyopadhyay, Siddhartha & Oak, Mandar P., 2008. "Coalition governments in a model of parliamentary democracy," European Journal of Political Economy, Elsevier, vol. 24(3), pages 554-561, September.
  3. Antonio Merlo, 2005. "Whither Political Economy? Theories, Facts and Issues," PIER Working Paper Archive 05-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2005.
  4. Pech, Gerald, 2012. "Intra-party decision making, party formation, and moderation in multiparty systems," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 14-22.

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