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Rejecter-proposer legislative bargaining with heterogeneous time and risk preferences

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  • Tomohiko Kawamori

Abstract

This article considers a legislative bargaining model in which the rejecter in the previous round becomes the proposer in the current round. We allow the time and risk preferences to differ across players and the voting quota to be a supermajority or submajority. We show that there exists a stationary subgame perfect equilibrium and that each player’s equilibrium payoff conditional on being a proposer is unique, and we explicitly derive the equilibria and equilibrium payoff. We compare a proposer’s equilibrium payoff when the time interval between two consecutive rounds tends to zero with respect to the protocols of the selection of proposers and the voting quota: we show that a proposer’s equilibrium payoff can be greater in this article’s rejecter-proposer model than in the Baron–Ferejohn random-proposer model; even though the voting quota increases, a proposer’s equilibrium payoff can increase. Copyright Springer-Verlag 2013

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  • Tomohiko Kawamori, 2013. "Rejecter-proposer legislative bargaining with heterogeneous time and risk preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 27-40, January.
  • Handle: RePEc:spr:sochwe:v:40:y:2013:i:1:p:27-40
    DOI: 10.1007/s00355-011-0567-9
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    Cited by:

    1. Britz, Volker, 2018. "Rent-seeking and surplus destruction in unanimity bargaining," Games and Economic Behavior, Elsevier, vol. 109(C), pages 1-20.
    2. Masanori Mitsutsune & Takanori Adachi, 2014. "Estimating noncooperative and cooperative models of bargaining: an empirical comparison," Empirical Economics, Springer, vol. 47(2), pages 669-693, September.
    3. Eraslan, Hülya & McLennan, Andrew, 2013. "Uniqueness of stationary equilibrium payoffs in coalitional bargaining," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2195-2222.
    4. P. Jean-Jacques Herings & Harold Houba, 2022. "Costless delay in negotiations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(1), pages 69-93, July.
    5. Tomohiko Kawamori, 2021. "Core equivalence in collective-choice bargaining under minimal assumptions," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 9(2), pages 259-267, October.
    6. Kawamori, Tomohiko, 2022. "Coalition-then-allocation legislative bargaining," Journal of Mathematical Economics, Elsevier, vol. 99(C).

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