Proto-coalition bargaining and the core
AbstractIn the proto-coalition model of government formation, formateur F appoints a proto-coalition and asks its members whether to start negotiating a coalition contract. If all accept, then the proto-coalition forms and starts negotiating; otherwise a caretaker government assumes office. I extend this model by allowing F to revise the chosen proto-coalition after rejections, that he states pre-conditions for the subsequent negotiations, and that F's opponents may publicly pre-commit to accept/reject certain proposals. The set of equilibrium outcomes is identified as the core if F's opponents can pre-commit and as the convex hull of the core if they cannot pre-commit credibly. This extended model eliminates two flaws of the standard model: it explains why F cannot always install his favored coalition (whatever the status quo) and why "important" coalition members may have more bargaining power in the subsequent negotiations than others.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24995.
Date of creation: 14 Sep 2010
Date of revision:
coalition formation; non-cooperative bargaining; core;
Other versions of this item:
- 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
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-25 (All new papers)
- NEP-BEC-2010-09-25 (Business Economics)
- NEP-CDM-2010-09-25 (Collective Decision-Making)
- NEP-GTH-2010-09-25 (Game Theory)
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