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Bargaining over an endogenous agenda

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  • Anesi, Vincent

    () (School of Economics, University of Nottingham)

  • Seidmann, Daniel J.

    () (School of Economics, University of Nottingham)

Abstract

We present a model of bargaining in which a committee searches over the policy space, successively amending the default by voting over proposals. Bargaining ends when proposers are unable or unwilling to amend the existing default, which is then implemented. Our main goal is to study the policies which can be implemented from any initial default in a pure strategy stationary Markov perfect equilibrium for an interesting class of environments including multi-dimensional and infinite policy spaces. It is convenient to start by characterizing the set of immovable policies: which are implemented, once reached as default. These policies form a weakly stable set; and conversely, any weakly stable set is supported by some equilibrium. Using these results, we show that minimum-winning coalitions may not form, and that a player who does not propose may nevertheless earn all of the surplus from agreement. We then consider how equilibrium outcomes change as we vary the order in which players propose, the identity of proposers, and the set of winning coalitions. First, if the policy space is well ordered then the committee implements the ideal policy of the last proposer in a subset of a weakly stable set; but this result does not generalize to other cases. We also show, surprisingly, that a player may prefer not to be given the opportunity to propose; and that the set of immovable policies may shrink as the quota increases. Finally, we derive conditions under which immovable policies in semi-Markovian equilibria form a consistent choice set.

Suggested Citation

  • Anesi, Vincent & Seidmann, Daniel J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
  • Handle: RePEc:the:publsh:1318
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    References listed on IDEAS

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    Cited by:

    1. repec:the:publsh:2215 is not listed on IDEAS
    2. Anesi, Vincent & Duggan, John, 0. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society.
    3. repec:kap:theord:v:82:y:2017:i:4:d:10.1007_s11238-016-9577-5 is not listed on IDEAS
    4. Mao, Liang, 2015. "Subgame Perfect Equilibrium in a Bargaining Model with Deterministic Procedures," MPRA Paper 67859, University Library of Munich, Germany.
    5. Anesi, Vincent & Seidmann, Daniel J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    6. 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.
    7. Dahm, Matthias & Glazer, Amihai, 2015. "A carrot and stick approach to agenda-setting," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 465-480.
    8. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    9. 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.
    10. Vincent Anesi & John Duggan, 2015. "Dynamic Bargaining and External Stability with Veto Players," Discussion Papers 2015-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    11. repec:eee:gamebe:v:103:y:2017:i:c:p:30-40 is not listed on IDEAS
    12. Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining in Standing Committees," Discussion Papers 2012-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

    More about this item

    Keywords

    Bargaining; committee voting; evolving default; stable set;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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