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Pre-electoral Coalitions and Post-election Bargaining

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  • Siddhartha Bandyopadhyay

    ()
    (Birmingham)

  • Kalyan Chatterjee

    ()
    (Penn State)

  • Tomas Sjostrom

    ()
    (Rutgers)

Abstract

Pre-electoral coalitions occur frequently in parliamentary democracies. They influence post election coalition formation and surplus division. We study a game theoretic model where political parties can form coalitions both before (ex ante) and after (ex post) the elections. Ex ante coalitions can commit to a seat-sharing arrangement, but neither to a policy nor to a division of rents from office; coalition members are even free to break up and join other coalitions after the election. Equilibrium ex ante coalitions are not necessarily made up of the most ideologically similar parties, and they form under (national list) proportional representation as well as plurality rule. They do not form just to avoid "splitting the vote", but also because seat-sharing arrangements will influence the ex post bargaining and coalition formation. The ex post bargaining protocol matters greatly: there is more scope for coalition formation, both ex ante and ex post, under an Austen-Smith and Banks protocol than under "random recognition".

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Bibliographic Info

Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200908.

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Length: 20 pages
Date of creation: 15 Sep 2009
Date of revision:
Handle: RePEc:rut:rutres:200908

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  1. Diermeier, Daniel & Merlo, Antonio, 2004. "An empirical investigation of coalitional bargaining procedures," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 783-797, March.
  2. Torsten Persson & Gerard Roland & Guido Tabellini, 2007. "Electoral Rules and Government Spending in Parliamentary Democracies," Levine's Working Paper Archive 321307000000000880, David K. Levine.
  3. Martin J Osborne & Rabee Tourky, 2010. "Party formation in collective decision-making," Levine's Working Paper Archive 506439000000000050, David K. Levine.
  4. Siddhartha Bandyopadhyay & Kalyan Chatterjee, 2006. "Coalition Theory and its Applications: A Survey," Economic Journal, Royal Economic Society, vol. 116(509), pages F136-F155, 02.
  5. Morelli, Massimo, 1998. "Party Formation and Policy Outcomes Under Different Electoral Systems," Staff General Research Papers 1242, Iowa State University, Department of Economics.
  6. Siddhartha Bandyopadhyay & Mandar Oak, 2004. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Working Papers 2004.98, Fondazione Eni Enrico Mattei.
  7. Eraslan, Hulya & Merlo, Antonio, 2002. "Majority Rule in a Stochastic Model of Bargaining," Journal of Economic Theory, Elsevier, vol. 103(1), pages 31-48, March.
  8. Siddhartha Bandyopadhyay & Mandar Oak, 2006. "Coalition Governments in a Model of Parliamentary Democracy," Working Papers 2006.83, Fondazione Eni Enrico Mattei.
  9. Jackson, Matthew O. & Moselle, Boaz, 1998. "Coalition and Party Formation in a Legislative Voting Game," Working Papers 1036, California Institute of Technology, Division of the Humanities and Social Sciences.
  10. 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.
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  12. Daniel Diermeier & Antonio Merlo, 1998. "Government Turnover in Parliamentary Democracies," Discussion Papers 1232, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  13. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
  14. Okada, Akira, 2007. "Coalitional Bargaining Games with Random Proposers: Theory and Application," Discussion Papers 2007-10, Graduate School of Economics, Hitotsubashi University.
  15. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
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  17. Chatterjee, Kalyan & Bhaskar Dutta & Debraj Ray & Kunal Sengupta, 1993. "A Noncooperative Theory of Coalitional Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 463-77, April.
  18. Marc Debus, 2009. "Pre-electoral commitments and government formation," Public Choice, Springer, vol. 138(1), pages 45-64, January.
  19. Levy, Gilat, 2004. "A model of political parties," Journal of Economic Theory, Elsevier, vol. 115(2), pages 250-277, April.
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Cited by:
  1. Daniel Diermeier & Pohan Fong, 2011. "Legislative Bargaining with Reconsideration," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 947-985.
  2. Francesco Giovannoni & Daniel Seidmann, 2014. "Corruption and power in democracies," Social Choice and Welfare, Springer, vol. 42(3), pages 707-734, March.

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