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Bargaining In Legislatures Over Private And Public Goods With Endogenous Recognition

Author

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  • Hakan Genç

    (Department of Economics, Middle East Technical University, Ankara, Turkey)

  • Serkan Küçükşenel

    (Department of Economics, Middle East Technical University, Ankara, Turkey)

Abstract

This paper studies a sequential model of multilateral bargaining with a majority rule in which legislators can make decisions over both private and public good dimensions with endogenous recognition process. Legislators expend resources to be the proposer and make proposals about the allocation of private and public goods. We show that legislators can exert effort to be the proposer and make proposals in both dimensions depending on legislative preferences. Effort choices in equilibrium mainly depend on preferences over both distributional and ideological dimensions, as well as the patience level of legislators and the size of the legislature. We also show that in a diverse legislature, it may be possible to have distributive policies when the majority has collective desires or vice-versa.

Suggested Citation

  • Hakan Genç & Serkan Küçükşenel, 2018. "Bargaining In Legislatures Over Private And Public Goods With Endogenous Recognition," ERC Working Papers 1805, ERC - Economic Research Center, Middle East Technical University, revised Mar 2018.
    • Handle: RePEc:met:wpaper:1805
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    References listed on IDEAS

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    Cited by:

    1. Andrzej Baranski & Ernesto Reuben, 2023. "Competing for Proposal Rights: Theory and Experimental Evidence," Working Papers 20220085, New York University Abu Dhabi, Department of Social Science, revised Mar 2023.

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    More about this item

    Keywords

    Multilateral bargaining; majority rule; public goods;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • 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

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