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Pork Versus Public Goods: An Experimental Study of Public Good Provision Within a Legislative Bargaining Framework

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  • Guillaume R. Frechette
  • John H. Kagel
  • Massimo Morelli

Abstract

We experimentally investigate a legislative bargaining model with both public and particularistic goods. Consistent with the qualitative implications of the model: There is near exclusive public good provision in the pure public good region, in the pure private good region minimum winning coalitions sharing private goods predominate, and in the ‘mixed’ region proposers generally take some particularistic goods for themselves, allocating the remainder to public goods. As in past experiments, proposer ower is not nearly as strong as predicted, resulting in public good provision decreasing in the mixed region as its relative value increases, which is inconsistent with the theory.

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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number ECO2010/37.

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Date of creation: 2010
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Handle: RePEc:eui:euiwps:eco2010/37

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Keywords: Legislative Bargaining; Public Goods; Efficiency;

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References

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  1. Michalis Drouvelis & Maria Montero & Martin Sefton, 2007. "The Paradox of New Members: Strategic Foundations and Experimental Evidence," Discussion Papers 2007-06, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
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  5. G Frechette & J Kagel & M Morelli, 2004. "Behavioral Identification in Coalition Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Levine's Bibliography 122247000000000006, UCLA Department of Economics.
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  7. 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.
  8. Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September.
  9. Leblanc, William & Snyder, James Jr. & Tripathi, Micky, 2000. "Majority-rule bargaining and the under provision of public investment goods," Journal of Public Economics, Elsevier, vol. 75(1), pages 21-47, January.
  10. Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  11. Marco Battaglini & Salvatore Nunnari & Thomas R. Palfrey, 2010. "Political Institutions and the Dynamics of Public Investment," Carlo Alberto Notebooks 142, Collegio Carlo Alberto.
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  13. Croson, Rachel T. A., 1996. "Partners and strangers revisited," Economics Letters, Elsevier, vol. 53(1), pages 25-32, October.
  14. Jackson, Matthew O. & Moselle, Boaz, 1998. "Coalition and Party Formation in a Legislative Voting Game," Working Papers 1036, California Institute of Technology, Division of the Humanities and Social Sciences.
  15. Banks, Jeffrey S. & Duggan, John, 1999. "A Bargaining Model of Collective Choice," Working Papers 1053, California Institute of Technology, Division of the Humanities and Social Sciences.
  16. Harrington, Joseph E, Jr, 1990. " The Role of Risk Preferences in Bargaining When Acceptance of a Proposal Requires Less than Unanimous Approval," Journal of Risk and Uncertainty, Springer, vol. 3(2), pages 135-54, June.
  17. Guillaume R. Frechette & John H. Kagel & Steven Lehrer, 2000. "Bargaining in Legislatures: An Experimental Investigation of Open versus Closed Amendment Rules," Econometric Society World Congress 2000 Contributed Papers 1515, Econometric Society.
  18. 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.
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Citations

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Cited by:
  1. Rodet, Cortney S., 2011. "Voter Behavior and Seniority Advantage in Pork Barrel Politics," MPRA Paper 33192, University Library of Munich, Germany.
  2. David Baron & Alexander Hirsch, 2012. "Common agency lobbying over coalitions and policy," Economic Theory, Springer, vol. 49(3), pages 639-681, April.
  3. Neil Buckley & Katherine Cuff & Jeremiah Hurley & Stuart Mestelman & Stephanie Thomas & David Cameron, 2013. "Support for Public Provision with Top-Up and Opt-Out: A Controlled Laboratory Experiment," Department of Economics Working Papers 2013-15, McMaster University.
  4. Gagliarducci, Stefano & Nannicini, Tommaso & Naticchioni, Paolo, 2008. "Electoral Rules and Politicians’ Behavior: A Micro Test," IZA Discussion Papers 3348, Institute for the Study of Labor (IZA).
  5. Battaglini, Marco & Palfrey, Thomas R., 2007. "The dynamics of distributive politics," Working Papers 1273, California Institute of Technology, Division of the Humanities and Social Sciences.
  6. Battaglini, Marco & Nunnari, Salvatore & Palfrey, Thomas, 2011. "Legislative bargaining and the dynamics of public investment," Discussion Papers, Research Unit: Market Behavior SP II 2011-205, Social Science Research Center Berlin (WZB).
  7. Francesco Squintani, 2012. "Introduction to the symposium in political economy," Economic Theory, Springer, vol. 49(3), pages 513-519, April.
  8. Breitmoser, Yves & Tan, Jonathan H.W., 2014. "Reference Dependent Altruism," MPRA Paper 52774, University Library of Munich, Germany.

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