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Coalition Governments in a Model of Parliamentary Democracy

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  • Bandyopadhyay, Siddhartha
  • Oak, Mandar

Abstract

We analyze the relative importance of party ideology and rents from office in the formation of coalitions in a parliamentary democracy. In equilibrium, the types of coalitions that are formed may be minimal winning, minority or surplus and they may be ideologically `disconnected'. The coalitions that form depend upon the relative importance of rents of office and seat shares of the parties. If rents are high, governments cannot be surplus. With low rents or the formateur close to the median, minority governments occur for a wider ideological dispersion. Further, there is a non-monotonic relationship between connectedness of coalitions and rents.

Suggested Citation

  • Bandyopadhyay, Siddhartha & Oak, Mandar, 2006. "Coalition Governments in a Model of Parliamentary Democracy," Coalition Theory Network Working Papers 12173, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemct:12173
    DOI: 10.22004/ag.econ.12173
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    Cited by:

    1. is not listed on IDEAS
    2. Hughes, Niall, 2016. "Voting in legislative elections under plurality rule," Journal of Economic Theory, Elsevier, vol. 166(C), pages 51-93.
    3. Baskaran, Thushyanthan, 2013. "Coalition governments, cabinet size, and the common pool problem: Evidence from the German states," European Journal of Political Economy, Elsevier, vol. 32(C), pages 356-376.
    4. Bonaparte, Yosef, 2025. "Presidential versus parliamentary: Political system and stock market volatility," European Journal of Political Economy, Elsevier, vol. 87(C).
    5. Lewis, Blane D. & Hendrawan, Adrianus, 2019. "The impact of majority coalitions on local government spending, service delivery, and corruption in Indonesia," European Journal of Political Economy, Elsevier, vol. 58(C), pages 178-191.
    6. Bjorvatn, Kjetil & Naghavi, Alireza, 2011. "Rent seeking and regime stability in rentier states," European Journal of Political Economy, Elsevier, vol. 27(4), pages 740-748.
    7. Tridimas, George, 2011. "The political economy of power-sharing," European Journal of Political Economy, Elsevier, vol. 27(2), pages 328-342, June.
    8. Luca Murrau, 2006. "An Overview Across the New Political Economy Literature," Economics Bulletin, AccessEcon, vol. 4(28), pages 1-12.
    9. Siddhartha Bandyopadhyay & Mandar Oak, 2022. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Games, MDPI, vol. 13(4), pages 1-17, June.
    10. Gersbach, Hans & Schneider, Maik T., 2012. "Tax contracts, party bargaining, and government formation," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 173-192.
    11. Antonio Merlo, 2005. "Whither Political Economy? Theories, Facts and Issues," PIER Working Paper Archive 05-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2005.
    12. repec:ebl:ecbull:v:4:y:2006:i:28:p:1-12 is not listed on IDEAS
    13. Piolatto, Amedeo, 2011. "Plurality versus proportional electoral rule: Which is most representative of voters?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 311-327, June.
    14. Siddhartha Bandyopadhyay & Kalyan Chatterjee & Tomas Sjöström, 2013. "Pre-electoral Coalitions and Post-election Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 7, pages 129-181, World Scientific Publishing Co. Pte. Ltd..
    15. Tsuchimoto Menkyna, Fusako, 2014. "A theory of ethnic diversity and income distribution: A legislative bargaining approach," European Journal of Political Economy, Elsevier, vol. 34(C), pages 52-67.
    16. Blane D. Lewis & Adrianus Hendrawan, 2018. "The impact of mayor-council coalitions on local government spending, service delivery, and corruption in Indonesia," Departmental Working Papers 2018-19, The Australian National University, Arndt-Corden Department of Economics.

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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H19 - Public Economics - - Structure and Scope of Government - - - Other

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