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Existence and Computation of Pure-strategy Equilibria in Models of Legislative Bargaining with Reconsideration

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  • Pohan Fong

Abstract

Diermeier and Fong (2008a) recently proposed a legislative bargaining model with reconsideration in the context of a distributive policy environment. In this paper we prove general existence and necessary conditions for pure-strategy stationary equilibria for any finite policy space and preference profile. We also provide an algorithm to compute these equilibria. In any such equilibrium proposal power is endogenously limited compared to the case of no reconsideration. The general model is then applied to various policy environments, including a model with spatial preferences. In the context of a public goods environment we can show that lack of commitment increases policy efficiency.

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Bibliographic Info

Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1466.

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Date of creation: 07 Aug 2008
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Handle: RePEc:nwu:cmsems:1466

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Postal: Center for Mathematical Studies in Economics and Management Science, Northwestern University, 580 Jacobs Center, 2001 Sheridan Road, Evanston, IL 60208-2014
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Web page: http://www.kellogg.northwestern.edu/research/math/
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Keywords: Legislative bargaining; reconsideration; evolving default; proposal power; lack of commitment; distributive politics; public goods; spatial model.;

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Cited by:
  1. Vincent Anesi, 2009. "Noncooperative Foundations of Stable Sets in Voting Games," RCER Working Papers 551, University of Rochester - Center for Economic Research (RCER).

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