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Veto Games: Spatial Committees under Unanimity Rule

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  • Chen, Yan
  • Ordeshook, Peter C

Abstract

There exists a large literature on two-person bargaining games and distribution games (or divide-the-dollar games) under simple majority rule, where in equilibrium a minimal winning coalition takes full advantage over everyone else. Here the authors extend the study to an n-person veto game where players take turns proposing policies in an n-dimensional policy space and everybody has a veto over changes in the status quo. Briefly, they find a Nash equilibrium where the initial proposer offers a policy in the intersection of the Pareto optimal set and the Pareto superior set that gives everyone their continuation values, and punishments are never implemented. Comparing the equilibrium outcomes under two different agendas--sequential recognition and random recognition--the authors find that there are advantages generated by the order of proposal under the sequential recognition rule. They also provide some conditions under which the players will prefer to rotate proposals rather than allow any specific policy to prevail indefinitely. Copyright 1998 by Kluwer Academic Publishers

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  • Chen, Yan & Ordeshook, Peter C, 1998. "Veto Games: Spatial Committees under Unanimity Rule," Public Choice, Springer, vol. 97(4), pages 617-643, December.
  • Handle: RePEc:kap:pubcho:v:97:y:1998:i:4:p:617-43
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    Cited by:

    1. Laurent Bouton & Aniol Llorente-Saguer & Frédéric Malherbe, 2014. "Get Rid of Unanimity: The Superiority of Majority Rule with Veto Power," NBER Working Papers 20417, National Bureau of Economic Research, Inc.
    2. Schulz, Norbert, 2000. "Thoughts on the nature of vetoes when bargaining on public projects," W.E.P. - Würzburg Economic Papers 17, University of Würzburg, Chair for Monetary Policy and International Economics.
    3. Keith Dougherty & Brian Pitts & Justin Moeller & Robi Ragan, 2014. "An experimental study of the efficiency of unanimity rule and majority rule," Public Choice, Springer, vol. 158(3), pages 359-382, March.
    4. Keith Dougherty & Julian Edward, 2012. "Voting for Pareto optimality: a multidimensional analysis," Public Choice, Springer, vol. 151(3), pages 655-678, June.

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