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Proximity in Coalition Building

Author

Listed:
  • Julien Reynaud

    (Paris School of Economics)

  • Fabien Lange

    (University Montesquieu)

  • Łukasz Gątarek

    (Tinbergen Institute)

  • Christian Thimann

    (European Central Bank)

Abstract

Voting power methodology offers insights to understand coalition building in collective decision making. This paper proposes a new measure of voting power inspired from Banzhaf (1965) accounting for the proximity between voters by capturing how often they appear in winning coalitions together. Using this proximity index, we introduce a notion of relative linkages among coalition participants as determinant of coalition building. We propose an application to the governance structure of the International Monetary Fund, with linkages being represented by bilateral volumes of trade between voters. The results are able to explain several important features of the functioning of this particular voting body, and may be useful for other applications in international politics.

Suggested Citation

  • Julien Reynaud & Fabien Lange & Łukasz Gątarek & Christian Thimann, 2011. "Proximity in Coalition Building," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 3(3), pages 111-132, September.
    • Handle: RePEc:psc:journl:v:3:y:2011:i:3:p:111-132
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    References listed on IDEAS

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    3. László Á. Kóczy, 2009. "Measuring voting power: The paradox of new members vs the null player axiom," Working Paper Series 0903, Óbuda University, Keleti Faculty of Business and Management.

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    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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