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Bargaining over an Endogenous Agenda

Author

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  • Vincent Anesi

    (School of Economics, University of Nottingham)

  • Daniel J Seidmann

    (School of Economics, University of Nottingham)

Abstract

We present a model of bargaining in which a committee searches over the policy space, successively amending the default by voting over proposals. Bargaining ends when proposers are unable or unwilling to amend the existing default, which is then implemented. We characterize the policies which can be implemented from any initial default in a pure strategy stationary Markov perfect equilibrium for an interesting class of environments including multi-dimensional and infinite policy spaces. Minimumwinning coalitions may not form, and a player who does not propose may nevertheless earn all of the surplus from agreement. The set of immovable policies (which are implemented, once reached as default) forms a weakly stable set; and conversely, any weakly stable set is supported by some equilibrium. If the policy space is well ordered then the committee implements the ideal policy of the last proposer in a subset of a weakly stable set. However, this result does not generalize to other cases, allowing us to explore the effects of protocol manipulation. Variations in the quota and in the set of proposers may have surprising effects on the set of immovable policies. We also show that equilibria of our model are contemporaneous perfect e-equilibria of a related model of repeated implementation with an evolving default; and that immovable policies in semi-Markovian equilibria form the largest consistent set.

Suggested Citation

  • Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining over an Endogenous Agenda," Discussion Papers 2012-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2012-03
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Vincent Anesi & Mikhail Safronov, 2021. "Cloturing Deliberation," DEM Discussion Paper Series 21-03, Department of Economics at the University of Luxembourg.
    2. Anesi, Vincent & Duggan, John, 2018. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society, vol. 13(2), May.
    3. Dutta, Bhaskar & Vartiainen, Hannu, 2020. "Coalition formation and history dependence," Theoretical Economics, Econometric Society, vol. 15(1), January.
    4. Hülya Eraslan & Kirill S. Evdokimov & Jan Zápal, 2022. "Dynamic Legislative Bargaining," Springer Books, in: Emin Karagözoğlu & Kyle B. Hyndman (ed.), Bargaining, chapter 0, pages 151-175, Springer.
    5. Liang Mao, 2017. "Subgame perfect equilibrium in a bargaining model with deterministic procedures," Theory and Decision, Springer, vol. 82(4), pages 485-500, April.
    6. Vincent Anesi & Mikhail Safronov, 2023. "Deciding When To Decide: Collective Deliberation And Obstruction," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 757-781, May.
    7. Mao, Liang, 2015. "Subgame Perfect Equilibrium in a Bargaining Model with Deterministic Procedures," MPRA Paper 67859, University Library of Munich, Germany.
    8. Jeon, Jee Seon & Hwang, Ilwoo, 2022. "The emergence and persistence of oligarchy: A dynamic model of endogenous political power," Journal of Economic Theory, Elsevier, vol. 201(C).
    9. , & , J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    10. S. Nageeb Ali & B. Douglas Bernheim & Alexander W. Bloedel & Silvia Console Battilana, 2022. "Who Controls the Agenda Controls the Polity," Papers 2212.01263, arXiv.org.
    11. Berry, Christopher R. & Fowler, Anthony, 2018. "Congressional committees, legislative influence, and the hegemony of chairs," Journal of Public Economics, Elsevier, vol. 158(C), pages 1-11.
    12. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    13. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    14. Dahm, Matthias & Glazer, Amihai, 2015. "A carrot and stick approach to agenda-setting," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 465-480.
    15. Bhaskar Dutta & Hannu Vartiainen, 2018. "Coalition Formation and History Dependence," Working Papers 1006, Ashoka University, Department of Economics.
    16. Salvador Barberà & Anke Gerber, 2022. "Deciding On What To Decide," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 37-61, February.
    17. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    18. Vincent Anesi & John Duggan, 2015. "Dynamic Bargaining and External Stability with Veto Players," Discussion Papers 2015-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    19. Anesi, Vincent & Duggan, John, 2017. "Dynamic bargaining and stability with veto players," Games and Economic Behavior, Elsevier, vol. 103(C), pages 30-40.
    20. Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining in Standing Committees," Discussion Papers 2012-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

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    More about this item

    Keywords

    bargaining; committee voting; evolving default; stable set;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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