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Bargaining one-dimensional policies and the efficiency of super majority rules

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  • Daniel Cardona
  • Clara Ponsatí

Abstract

We consider negotiations selecting one- dimensional policies. Individuals have single-peaked preferences, and they are impatient. Decisions arise from a bargaining game with random proposers and (super) majority approval, ranging from the simple majority up to unanimity. The existence and uniqueness of stationary subgame perfect equilibrium is established, and its explicit characterization provided. We supply an explicit formula to determine the unique alternative that prevails, as impatience vanishes, for each majority. As an application, we examine the ef- ciency of majority rules. For symmetric distributions of peaks unanimity is the unanimously preferred majority rule. For asymmetric populations rules maximizing social surplus are characterized.

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  • Daniel Cardona & Clara Ponsatí, 2008. "Bargaining one-dimensional policies and the efficiency of super majority rules," Working Papers 375, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:375
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    References listed on IDEAS

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    Cited by:

    1. Daniel Cardona & Clara Ponsatí, 2014. "Super-Majorites, One-Dimensional Policies, and Social Surplus," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 884-898, December.

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