IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Legislative Bargaining with Reconsideration

  • Daniel Diermeier
  • Pohan Fong
Registered author(s):

    We present a dynamic model of legislative bargaining with an endogenously evolving default policy and a persistent agenda setter. Policy making proceeds until the agenda setter can no longer pass a new policy to replace an approved bill. We prove existence and necessary conditions of pure-strategy stationary equilibria for any finite policy space, any number of players, and any preference profile. In equilibrium, the value of proposal power is limited compared to the case that disallows reconsideration, as voters are induced to protect each other's benefits to maintain their future bargaining positions. The agenda setter, in turn, would prefer to limit his ability to reconsider. The lack of commitment due to the possibility of reconsideration, however, enhances policy efficiency. Copyright 2011, Oxford University Press.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://hdl.handle.net/10.1093/qje/qjr016
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Oxford University Press in its journal The Quarterly Journal of Economics.

    Volume (Year): 126 (2011)
    Issue (Month): 2 ()
    Pages: 947-985

    as
    in new window

    Handle: RePEc:oup:qjecon:v:126:y:2011:i:2:p:947-985
    Contact details of provider:

    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.:

    as in new window
    1. Pohan Fong & Daniel Diermeier, 2008. "Endogenous Limits on Proposal Power," 2008 Meeting Papers 521, Society for Economic Dynamics.
    2. Stephen Coate & Marco Battaglini, 2007. "A Dynamic Theory of Public Spending, Taxation and Debt," 2007 Meeting Papers 573, Society for Economic Dynamics.
    3. Duggan, John & Kalandrakis, Tasos, 2012. "Dynamic legislative policy making," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1653-1688.
    4. Riboni, Alessandro, 2010. "Committees as Substitutes for Commitment," Economics Papers from University Paris Dauphine 123456789/7684, Paris Dauphine University.
    5. Bowen, T. Renee & Zahran, Zaki, 2009. "On Dynamic Compromise," Research Papers 2020, Stanford University, Graduate School of Business.
    6. Siddhartha Bandyopadhyay & Kalyan Chatterjee & Tomas Sjostrom, 2009. "Pre-Electoral Coalitions and Post-Election Bargaining," Discussion Papers 09-10, Department of Economics, University of Birmingham.
    7. Vincent Anesi, 2009. "Noncooperative Foundations of Stable Sets in Voting Games," RCER Working Papers 551, University of Rochester - Center for Economic Research (RCER).
    8. Marco Battaglini & Stephen Coate, 2007. "Inefficiency in Legislative Policymaking: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 97(1), pages 118-149, March.
    9. Marco Battaglini & Thomas Palfrey, 2007. "The Dynamics of Distributive Politics," Discussion Papers 1451, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    10. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2008. "Dynamics and Stability of Constitutions, Coalitions, and Clubs," NBER Working Papers 14239, National Bureau of Economic Research, Inc.
    11. Brian Knight, 2005. "Estimating the Value of Proposal Power," American Economic Review, American Economic Association, vol. 95(5), pages 1639-1652, December.
    12. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2009. "Political Selection and Persistence of Bad Governments," NBER Working Papers 15230, National Bureau of Economic Research, Inc.
    13. Pohan Fong, 2008. "Endogenous Limits on Proposal Power," Discussion Papers 1465, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    14. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2009. "Do Juntas Lead to Personal Rule?," American Economic Review, American Economic Association, vol. 99(2), pages 298-303, May.
    15. Egorov, Georgy & Sonin, Konstantin, 2004. "Dictators and Their Viziers: Agency Problems in Dictatorships," CEPR Discussion Papers 4777, C.E.P.R. Discussion Papers.
    16. Kalandrakis, Anastassios, 2004. "A three-player dynamic majoritarian bargaining game," Journal of Economic Theory, Elsevier, vol. 116(2), pages 294-322, June.
    17. Torsten Persson & Lars E. O. Svensson, 1989. "Why a Stubborn Conservative would Run a Deficit: Policy with Time-Inconsistent Preferences," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 325-345.
    18. Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
    19. Tasos Kalandrakis, 2007. "Majority Rule Dynamics with Endogenous Status Quo," Wallis Working Papers WP46, University of Rochester - Wallis Institute of Political Economy.
    20. James A. Robinson & Ragnar Torvik, 2008. "Endogenous Presidentialism," NBER Working Papers 14603, National Bureau of Economic Research, Inc.
    21. Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
    22. 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.
    23. B. Douglas Bernheim & Antonio Rangel & Luis Rayo, 2006. "The Power of the Last Word in Legislative Policy Making," Econometrica, Econometric Society, vol. 74(5), pages 1161-1190, 09.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:126:y:2011:i:2:p:947-985. 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: (Oxford University Press)

    or (Christopher F. Baum)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.