IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/191050.html
   My bibliography  Save this article

Hanging Together or Hanged Separately: The Strategic Power of Coalitions where Bargaining Occurs with Incomplete Information

Author

Listed:
  • Konrad, Kai A.
  • Cusack, Thomas R.

Abstract

What is the strategic role of membership in an intergovernmental group with unanimity requirements if the group negotiates with an external player in a setting with incomplete information? Being in such a group has a strategic effect compared to negotiating as a stand-alone player and reduces the demands of the outside player. Group membership lends additional bargaining power. Negotiating as a group may also cause more inefficiencies due to bargaining failure, and this may harm also the intergovernmental group. We uncover the role of preference alignment and preference independence between members of the coalition group for equilibrium payoffs and welfare effects. In this analysis, we also distinguish between coalition groups with and without side payments. Overall, coalition groups tend to perform well for the members of the coalition group in comparison to fully decentralized negotiations, particularly if the objectives of the members of the coalition group are not always perfectly aligned.

Suggested Citation

  • Konrad, Kai A. & Cusack, Thomas R., 2014. "Hanging Together or Hanged Separately: The Strategic Power of Coalitions where Bargaining Occurs with Incomplete Information," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(5), pages 920-940.
    • Handle: RePEc:zbw:espost:191050
    DOI: 10.1177/0022002713487319
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/191050/1/f-18551-full-text-Konrad-et_al-Hanging-v3.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0022002713487319?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paola Manzini & Marco Mariotti, 2009. "Alliances and negotiations: an incomplete information example," Review of Economic Design, Springer;Society for Economic Design, vol. 13(3), pages 195-203, September.
    2. Martijn L.P. Groenleer & Louise G. Van Schaik, 2007. "United We Stand? The European Union's International Actorness in the Cases of the International Criminal Court and the Kyoto Protocol," Journal of Common Market Studies, Wiley Blackwell, vol. 45, pages 969-998, December.
    3. Martijn L.P. Groenleer & Louise G. Van Schaik, 2007. "United We Stand? The European Union's International Actorness in the Cases of the International Criminal Court and the Kyoto Protocol," Journal of Common Market Studies, Wiley Blackwell, vol. 45(5), pages 969-998, December.
    4. David Stasavage, 2002. "Credible Commitment in Early Modern Europe: North and Weingast Revisited," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(1), pages 155-186, April.
    5. Feddersen, Timothy & Pesendorfer, Wolfgang, 1998. "Convicting the Innocent: The Inferiority of Unanimous Jury Verdicts under Strategic Voting," American Political Science Review, Cambridge University Press, vol. 92(1), pages 23-35, March.
    6. Kalyan Chatterjee & William Samuelson, 1983. "Bargaining under Incomplete Information," Operations Research, INFORMS, vol. 31(5), pages 835-851, October.
    7. Jupille, Joseph, 1999. "The European Union and International Outcomes," International Organization, Cambridge University Press, vol. 53(2), pages 409-425, April.
    8. Leeds, Brett Ashley, 2003. "Alliance Reliability in Times of War: Explaining State Decisions to Violate Treaties," International Organization, Cambridge University Press, vol. 57(4), pages 801-827, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anesti, Vincent & Buisseret, Peter, 2023. "The Politics of Bargaining as a Group," CRETA Online Discussion Paper Series 81, Centre for Research in Economic Theory and its Applications CRETA.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kai A. Konrad & Thomas R. Cusack, 2013. "Hanging Together or Being Hung Separately: The Strategic Power of Coalitions where Bargaining Occurs with Incomplete Information," CESifo Working Paper Series 4071, CESifo.
    2. Charles F. Parker & Christer Karlsson, 2017. "The European Union as a global climate leader: confronting aspiration with evidence," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(4), pages 445-461, August.
    3. Tom Delreux & Frauke Pipart, 2021. "Ego versus Alter: Internal and External Perceptions of the EU's Role in Global Environmental Negotiations," Journal of Common Market Studies, Wiley Blackwell, vol. 59(5), pages 1284-1302, September.
    4. Lampros Boukas & Diogo Pinheiro & Alberto Pinto & Stylianos Xanthopoulos & Athanasios Yannacopoulos, 2009. "Behavioural and Dynamical Scenarios for Contingent Claims Valuation in Incomplete Markets," Papers 0903.3657, arXiv.org.
    5. Lau, Stephanie, 2011. "Investment incentives in bilateral trading," Games and Economic Behavior, Elsevier, vol. 73(2), pages 538-552.
    6. Simona Fabrizi & Steffen Lippert & Addison Pan & Matthew Ryan, 2022. "A theory of unanimous jury voting with an ambiguous likelihood," Theory and Decision, Springer, vol. 93(3), pages 399-425, October.
    7. Andrés Abeliuk & Gerardo Berbeglia & Pascal Van Hentenryck, 2015. "Bargaining Mechanisms for One-Way Games," Games, MDPI, vol. 6(3), pages 1-21, September.
    8. Jean-Michel Benkert, 2015. "Bilateral trade with loss-averse agents," ECON - Working Papers 188, Department of Economics - University of Zurich, revised Jul 2022.
    9. Bhattacharya, Sourav & Duffy, John & Kim, Sun-Tak, 2014. "Compulsory versus voluntary voting: An experimental study," Games and Economic Behavior, Elsevier, vol. 84(C), pages 111-131.
    10. Andrianova, Svetlana & Demetriades, Panicos & Xu, Chenggang, 2011. "Political Economy Origins of Financial Markets in Europe and Asia," World Development, Elsevier, vol. 39(5), pages 686-699, May.
    11. Rita Martins de Sousa, 2019. "Portugal adoption of the gold standard: political reasons for a monetary choice (1846-1854)," Working Papers GHES - Office of Economic and Social History 2019/64, ISEG - Lisbon School of Economics and Management, GHES - Social and Economic History Research Unit, Universidade de Lisboa.
    12. Paul Poast, 2013. "Issue linkage and international cooperation: An empirical investigation," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(3), pages 286-303, July.
    13. Rustichini, Aldo & Satterthwaite, Mark A & Williams, Steven R, 1994. "Convergence to Efficiency in a Simple Market with Incomplete Information," Econometrica, Econometric Society, vol. 62(5), pages 1041-1063, September.
    14. Carrillo, Juan D. & Palfrey, Thomas R., 2011. "No trade," Games and Economic Behavior, Elsevier, vol. 71(1), pages 66-87, January.
    15. Quement, Mark T. Le & Marcin, Isabel, 2020. "Communication and voting in heterogeneous committees: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 449-468.
    16. Alejandro Quiroz Flores, 2011. "Alliances as Contiguity in Spatial Models of Military Expenditures," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(4), pages 402-418, September.
    17. Schaefer, Alexander, 2021. "Rationality, uncertainty, and unanimity: an epistemic critique of contractarianism," Economics and Philosophy, Cambridge University Press, vol. 37(1), pages 82-117, March.
    18. Shmuel Leshem, 2010. "The benefits of a right to silence for the innocent," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 398-416, June.
    19. Neilson, William S. & Winter, Harold, 2005. "The Elimination of Hung Juries: Retrials and Nonunanimous Verdicts," International Review of Law and Economics, Elsevier, vol. 25(1), pages 1-19, March.
    20. Gayer Gabrielle & Segev Ella, 2012. "Revealing Private Information in Bargaining," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-34, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:191050. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.