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Representing a democratic constituency in negotiations: delegation versus ratification

Listed author(s):
  • Daniel Cardona

    ()

  • Clara Ponsatí

    ()

We consider negotiations where one of the parties is a group that must send a representative to the bargaining table. We examine the trade-offs that the group faces in choosing between two different regimes for this representation: (i) Delegation where the representative is granted full authority to reach an agreement, and (ii) Ratification, where any agreement reached by the representative requires a posterior ratification vote. We show that when the group has flexibility—to select the delegate or to set the majority threshold for ratification—the majority of the group favors delegation. Only when the flexibility is limited or delegates are (sufficiently) unreliable will the majority of the group prefer ratification. Copyright Springer-Verlag Berlin Heidelberg 2015

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File URL: http://hdl.handle.net/10.1007/s00355-015-0895-2
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Article provided by Springer & The Society for Social Choice and Welfare in its journal Social Choice and Welfare.

Volume (Year): 45 (2015)
Issue (Month): 2 (September)
Pages: 399-414

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Handle: RePEc:spr:sochwe:v:45:y:2015:i:2:p:399-414
DOI: 10.1007/s00355-015-0895-2
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  1. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2012. "Fast-Track Authority and International Trade Negotiations," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 146-189, August.
  2. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
  3. Motty Perry & Larry Samuelson, 1994. "Open- versus Closed-Door Negotiations," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 348-359, Summer.
  4. Cai, Hongbin, 2000. "Bargaining on Behalf of a Constituency," Journal of Economic Theory, Elsevier, vol. 92(2), pages 234-273, June.
  5. Bester, Helmut & Sakovics, Jozsef, 2001. "Delegated bargaining and renegotiation," Journal of Economic Behavior & Organization, Elsevier, vol. 45(4), pages 459-473, August.
  6. Rothstein, Paul, 1991. "Representative Voter Theorems," Public Choice, Springer, vol. 72(2-3), pages 193-212, December.
  7. Manzini, Paola & Mariotti, Marco, 2005. "Alliances and negotiations," Journal of Economic Theory, Elsevier, vol. 121(1), pages 128-141, March.
  8. Jones, Stephen R. G., 1989. "Have your lawyer call my lawyer : Bilateral delegation in bargaining situations," Journal of Economic Behavior & Organization, Elsevier, vol. 11(2), pages 159-174, March.
  9. Bård Harstad, 2008. "Do Side Payments Help? Collective Decisions and Strategic Delegation," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 468-477, 04-05.
  10. Haller, Hans & Holden, Steinar, 1997. "Ratification Requirement and Bargaining Power," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 825-851, November.
  11. Wouter Dessein, 2002. "Authority and Communication in Organizations," Review of Economic Studies, Oxford University Press, vol. 69(4), pages 811-838.
  12. Hongbin Cai & Walter Cont, 2004. "Agency Problems and Commitment in Delegated Bargaining," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(4), pages 703-729, December.
  13. Christiansen, Nels, 2013. "Strategic delegation in a legislative bargaining model with pork and public goods," Journal of Public Economics, Elsevier, vol. 97(C), pages 217-229.
  14. Segendorff, Bjorn, 1998. "Delegation and Threat in Bargaining," Games and Economic Behavior, Elsevier, vol. 23(2), pages 266-283, May.
  15. Burtraw, Dallas, 1992. "Strategic delegation in bargaining," Economics Letters, Elsevier, vol. 38(2), pages 181-185, February.
  16. repec:cup:apsrev:v:94:y:2000:i:01:p:73-88_22 is not listed on IDEAS
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