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Party Formation and Coalitional Bargaining in a Model of Proportional Representation

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  • Siddhartha Bandyopadhyay

    (Department of Economics, University of Birmingham)

  • Mandar Oak

    (Department of Economics, Williams College)

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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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.98.

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Date of creation: Jun 2004
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Handle: RePEc:fem:femwpa:2004.98

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Keywords: Proportional representation; Party formation; Coalitions;

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  1. Hamlin, Alan & Hjortlund, Michael, 2000. " Proportional Representation with Citizen Candidates," Public Choice, Springer, vol. 103(3-4), pages 205-30, June.
  2. Diermeier, Daniel & Merlo, Antonio, 1998. "Government turnover in parliamentary democracies," Bulletins 7453, University of Minnesota, Economic Development Center.
  3. Daniel Diermeier & Michael Keane & Antonio Merlo, 2005. "A Political Economy Model of Congressional Careers," American Economic Review, American Economic Association, vol. 95(1), pages 347-373, March.
  4. 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.
  5. Ignacio OrtuÓo-OrtÎn, 1997. "A spatial model of political competition and proportional representation," Social Choice and Welfare, Springer, vol. 14(3), pages 427-438.
  6. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  7. Massimo Morelli, 2004. "Party Formation and Policy Outcomes under Different Electoral Systems," Review of Economic Studies, Wiley Blackwell, vol. 71, pages 829-853, 07.
  8. Martin J. Osborne & Rabee Tourky, 2002. "Party Formation Incollective Decision-Making," Department of Economics - Working Papers Series 844, The University of Melbourne.
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Cited by:
  1. Pech, Gerald, 2012. "Intra-party decision making, party formation, and moderation in multiparty systems," Mathematical Social Sciences, Elsevier, vol. 63(1), pages 14-22.
  2. 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.
  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. Siddhartha Bandyopadhyay & Mandar Oak, 2006. "Coalition Governments in a Model of Parliamentary Democracy," Working Papers 2006.83, Fondazione Eni Enrico Mattei.

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