Legislative Bargaining under Weighted Voting
Organizations often distribute resources through weighted voting. We analyze this setting using a noncooperative bargaining game based on the Baron-Ferejohn (1989) model. Unlike analyses derived from cooperative game theory, we find that each voter's expected payoff is proportional to her voting weight. An exception occurs when many high-weight voters exist, as low-weight voters may expect disproportionately high payoffs due to proposal power. The model also predicts that, ex post, the coalition formateur (the party chosen to form a coalition) will receive a disproportionately high payoff. Using data from coalition governments from 1946 to 2001, we find strong evidence of such formateur effects.
Volume (Year): 95 (2005)
Issue (Month): 4 (September)
|Contact details of provider:|| Web page: https://www.aeaweb.org/aer/|
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jackson, Matthew O. & Moselle, Boaz, 2002.
"Coalition and Party Formation in a Legislative Voting Game,"
Journal of Economic Theory,
Elsevier, vol. 103(1), pages 49-87, March.
- 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.
- Moldovanu Benny & Winter Eyal, 1995. "Order Independent Equilibria," Games and Economic Behavior, Elsevier, vol. 9(1), pages 21-34, April.
- Norman,P., 2000.
"Legislative bargaining and coalition formation,"
12, Wisconsin Madison - Social Systems.
- Merlo, Antonio & Wilson, Charles A, 1995. "A Stochastic Model of Sequential Bargaining with Complete Information," Econometrica, Econometric Society, vol. 63(2), pages 371-99, March.
- Emilio Calvo & J. Javier Lasaga, 1997. "Probabilistic Graphs and Power Indices," Journal of Theoretical Politics, , vol. 9(4), pages 477-501, October.
- Tsebelis, George & Garrett, Geoffrey, 1996. "Agenda setting power, power indices, and decision making in the European Union," International Review of Law and Economics, Elsevier, vol. 16(3), pages 345-361, September.
- Norman Schofield, 1976. "The kernel and payoffs in European government coalitions," Public Choice, Springer, vol. 26(1), pages 29-49, June.
- Eraslan, Hulya, 2002. "Uniqueness of Stationary Equilibrium Payoffs in the Baron-Ferejohn Model," Journal of Economic Theory, Elsevier, vol. 103(1), pages 11-30, March.
- Roger B. Myerson & Daniel Diermeier, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December.
- Bates, Robert H. & Lien, Da-Hsiang Donald, 1985. "On the operations of the International Coffee Agreement," International Organization, Cambridge University Press, vol. 39(03), pages 553-559, June.
- Dreyer, Jacob S & Schotter, Andrew, 1980.
"Power Relationships in the International Monetary Fund: The Consequences of Quota Changes,"
The Review of Economics and Statistics,
MIT Press, vol. 62(1), pages 97-106, February.
- Dreyer, Jacob S. & Schotter, Andrew, 1978. "Power Relationships in the International Monetary Fund: The Consequences of Quota Changes," Working Papers 78-06, C.V. Starr Center for Applied Economics, New York University.
- Harrington, Joseph E, Jr, 1990. " The Role of Risk Preferences in Bargaining When Acceptance of a Proposal Requires Less than Unanimous Approval," Journal of Risk and Uncertainty, Springer, vol. 3(2), pages 135-54, June.
- Chari, V V & Jones, Larry E & Marimon, Ramon, 1997.
"The Economics of Split-Ticket Voting in Representative Democracies,"
American Economic Review,
American Economic Association, vol. 87(5), pages 957-76, December.
- V. V. Chari & Larry E. Jones & Ramon Marimon, 1997. "The economics of split-ticket voting in representative democracies," Working Papers 582, Federal Reserve Bank of Minneapolis.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
252, David K. Levine.
- Leblanc, William & Snyder, James Jr. & Tripathi, Micky, 2000. "Majority-rule bargaining and the under provision of public investment goods," Journal of Public Economics, Elsevier, vol. 75(1), pages 21-47, January.
- repec:oup:restud:v:60:y:1993:i:2:p:463-77 is not listed on IDEAS
- Bindseil, Ulrich & Hantke, Cordula, 1997. "The power distribution in decision making among EU member states," European Journal of Political Economy, Elsevier, vol. 13(1), pages 171-185, February.
- Widgren, Mika, 1991.
"Voting Power in the EC Decision Making and the Consequencesof two Different Enlargements,"
377, The Research Institute of the Finnish Economy.
- Widgren, Mika, 1994. "Voting power in the EC decision making and the consequences of two different enlargements," European Economic Review, Elsevier, vol. 38(5), pages 1153-1170, May.
- Laruelle, Annick & Widgren, Mika, 1998.
" Is the Allocation of Voting Power among EU States Fair?,"
Springer, vol. 94(3-4), pages 317-39, March.
- Annick Laruelle & Mika Widgrén, 1998. "Is the allocation of voting power among EU states fair?," Public Choice, Springer, vol. 94(3), pages 317-339, March.
- Laruelle, Annick & Widgren, Mika, 1996. "Is the allocation of voting power among EU states fair?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Sergiu Hart & Andreu Mas-Colell, 1994.
"Bargaining and value,"
Economics Working Papers
114, Department of Economics and Business, Universitat Pompeu Fabra, revised Feb 1995.
- Hosli, Madeleine O., 1993. "Admission of European Free Trade Association states to the European Community: effects on voting power in the European Community Council of Ministers," International Organization, Cambridge University Press, vol. 47(04), pages 629-643, September.
- 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.
- Daniel Diermeier & Antoni Merlo, 1999. "An Empirical Investigation of Coalitional Bargaining Procedures," Discussion Papers 1267, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Harrington, Joseph E, Jr, 1990. " The Power of the Proposal Maker in a Model of Endogenous Agenda Formation," Public Choice, Springer, vol. 64(1), pages 1-20, January.
- Sutter, Matthias, 2000.
" Flexible Integration, EMU and Relative Voting Power in the EU,"
Springer, vol. 104(1-2), pages 41-62, July.
- Matthias Sutter, 2000. "Flexible Integration, EMU and Relative Voting Power in the EU," Public Choice, Springer, vol. 104(1), pages 41-62, July.
- Harrington, Joseph Jr., 1989. "The advantageous nature of risk aversion in a three-player bargaining game where acceptance of a proposal requires a simple majority," Economics Letters, Elsevier, vol. 30(3), pages 195-200, September.
- Gul, Faruk, 1989. "Bargaining Foundations of Shapley Value," Econometrica, Econometric Society, vol. 57(1), pages 81-95, January.
- Baron David & Kalai Ehud, 1993. "The Simplest Equilibrium of a Majority-Rule Division Game," Journal of Economic Theory, Elsevier, vol. 61(2), pages 290-301, December.
- Bennett, Elaine, 1983. "Characterization results for aspirations in games with sidepayments," Mathematical Social Sciences, Elsevier, vol. 4(3), pages 229-241, July.
- Schofield, Norman, 1982. "Bargaining set theory and stability in coalition governments," Mathematical Social Sciences, Elsevier, vol. 3(1), pages 9-32, July.
- Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
This item is featured on the following reading lists or Wikipedia pages:
- Legislative Bargaining under Weighted Voting (AER 2005) in ReplicationWiki
When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:95:y:2005:i:4:p:981-1004. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros)or (Michael P. Albert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.