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Decision costs in legislative bargaining: an experimental analysis

  • Luis Miller

    ()

  • Christoph Vanberg

    ()

We conduct an experiment to assess the effects of different decision rules on the costs of decision making in a multilateral bargaining situation. Specifically, we compare the amount of costly delay observed in an experimental bargaining game under majority and unanimity rule. Our main finding is that individual subjects are more likely to reject offers under unanimity rule. This higher rejection rate, as well as the requirement that all subjects agree, leads to more costly delay. This result provides empirical support for a classic argument in favor of less-than-unanimity decision rules put forth by Buchanan and Tullock (The calculus of consent: logical foundations of constitutional democracy, University of Michigan Press, Ann Arbor, 1962 ). Copyright Springer Science+Business Media, LLC 2013

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File URL: http://hdl.handle.net/10.1007/s11127-011-9866-z
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Article provided by Springer in its journal Public Choice.

Volume (Year): 155 (2013)
Issue (Month): 3 (June)
Pages: 373-394

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Handle: RePEc:kap:pubcho:v:155:y:2013:i:3:p:373-394
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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  1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
  2. Diermeier, Daniel & Gailmard, Sean, 2006. "Self-Interest, Inequality, and Entitlement in Majoritarian Decision-Making," Quarterly Journal of Political Science, now publishers, vol. 1(4), pages 327-350, October.
  3. G Frechette & J Kagel & M Morelli, 2004. "Behavioral Identification in Coalition Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Levine's Bibliography 122247000000000006, UCLA Department of Economics.
  4. John Kagel & Hankyoung Sung & Eyal Winter, 2010. "Veto power in committees: an experimental study," Experimental Economics, Springer, vol. 13(2), pages 167-188, June.
  5. Frechette, Guillaume & Kagel, John H. & Morelli, Massimo, 2005. "Nominal bargaining power, selection protocol, and discounting in legislative bargaining," Journal of Public Economics, Elsevier, vol. 89(8), pages 1497-1517, August.
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