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Endogenous agenda formation processes with the one-deviation property

Author

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  • Vartiainen, Hannu

    () (Helskinki Center of Economic Research, University of Helsinki)

Abstract

We study collective choice via an endogenous agenda setting process. At each stage, a status quo is implemented unless it is replaced by a majority (winning coalition) with a new status quo outcome. The process continues until the prevailing status quo is no longer challenged. We impose a one-time deviation restriction on the feasible policy processes, reflecting farsightedness of voters. The key feature of the solution is history dependence. The existence of the solution is proven by iterating a version of the uncovered set. We show that the resulting fixed point is the largest set of outcomes that can be implemented via any policy process that meets the one-deviation restriction. Finally, we relate our solution to a concrete noncooperative model, and show that it can be interpreted as a refinement of the solution of Bernheim and Slavov (2009) in the context of repeated voting, and of the solution of Konishi and Ray (2003) and Vartiainen (2011) in the context of coalition formation.

Suggested Citation

  • Vartiainen, Hannu, 2014. "Endogenous agenda formation processes with the one-deviation property," Theoretical Economics, Econometric Society, vol. 9(1), January.
  • Handle: RePEc:the:publsh:1225
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    Cited by:

    1. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    2. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    3. Jan Zapal, 2014. "Simple Markovian Equilibria in Dynamic Spatial Legislative Bargaining," CERGE-EI Working Papers wp515, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Salvador Barberà & Anke Gerber, 2017. "A Shut Mouth Catches No Flies: Consideration of Issues and Voting," Working Papers 973, Barcelona Graduate School of Economics.

    More about this item

    Keywords

    Voting; history dependence; one-deviation principle; covering;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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