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Policy Reform

Author

Listed:
  • Avidit Acharya

    () (Stanford University)

  • Juan Ortner

    () (Boston University)

Abstract

We construct a model of policy reform in which two players continually search for Pareto improving policies. The players have imperfect control over the proposals that are considered. Ineffcient gridlock takes place due to the difficulty in finding moderate policies. The reform process is path dependent, with early agreements determining long-run outcomes. The process may also be cyclical, as players alternate between being more and less accommodating. Our model provides a noncooperative foundation for the "Raiffa path", by which bargainers gradually approach the Pareto frontier.

Suggested Citation

  • Avidit Acharya & Juan Ortner, 2017. "Policy Reform," Boston University - Department of Economics - Working Papers Series WP2017-007, Boston University - Department of Economics.
  • Handle: RePEc:bos:wpaper:wp2017-007
    as

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    File URL: http://www.bu.edu/econ/files/2017/04/Ortner-Policy.pdf
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    References listed on IDEAS

    as
    1. Fuente,Angel de la, 2000. "Mathematical Methods and Models for Economists," Cambridge Books, Cambridge University Press, number 9780521585293, September.
    2. Ortner, Juan, 2017. "A theory of political gridlock," Theoretical Economics, Econometric Society, vol. 12(2), May.
    3. Duggan, John & Kalandrakis, Tasos, 2012. "Dynamic legislative policy making," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1653-1688.
    4. T. Renee Bowen & Ying Chen & H?lya Eraslan, 2014. "Mandatory versus Discretionary Spending: The Status Quo Effect," American Economic Review, American Economic Association, vol. 104(10), pages 2941-2974, October.
    5. Albrecht, James & Anderson, Axel & Vroman, Susan, 2010. "Search by committee," Journal of Economic Theory, Elsevier, vol. 145(4), pages 1386-1407, July.
    6. Samet, Dov, 2009. "What if Achilles and the tortoise were to bargain? An argument against interim agreements," MPRA Paper 23370, University Library of Munich, Germany.
    7. Wioletta Dziuda & Antoine Loeper, 2016. "Dynamic Collective Choice with Endogenous Status Quo," Journal of Political Economy, University of Chicago Press, vol. 124(4), pages 1148-1186.
    8. Acharya, Avidit & Ortner, Juan, 2013. "Delays and partial agreements in multi-issue bargaining," Journal of Economic Theory, Elsevier, vol. 148(5), pages 2150-2163.
    9. Kalandrakis, Anastassios, 2004. "A three-player dynamic majoritarian bargaining game," Journal of Economic Theory, Elsevier, vol. 116(2), pages 294-322, June.
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    1. repec:spr:jogath:v:47:y:2018:i:4:d:10.1007_s00182-018-0618-x is not listed on IDEAS

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