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Party formation in collective decision-making

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  • Martin J Osborne
  • Rabee Tourky

Abstract

We study party formation in a general model of collective decisionmaking, modeling parties as agglomerations of policy positions championed by decision-makers. We show that if there are economies of party size and the policy chosen is not beaten by another policy in pairwise voting, then players agglomerate into exactly two parties. This result does not depend on the magnitude of the economies of party size or sensitively on the nature of the individuals' preferences. Our analysis encompasses a wide range of models, including decision-making in committees with costly participation and representative democracy in which the legislature is elected by citizens.
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Suggested Citation

  • Martin J Osborne & Rabee Tourky, 2010. "Party formation in collective decision-making," Levine's Working Paper Archive 506439000000000050, David K. Levine.
    • Handle: RePEc:cla:levarc:506439000000000050
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    Cited by:

    1. 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..
    2. Benoît Le Maux & Yvon Rocaboy, 2016. "Competition in fragmentation among political coalitions: theory and evidence," Public Choice, Springer, vol. 167(1), pages 67-94, April.
    3. Bandyopadhyay, Siddhartha & Oak, Mandar P., 2008. "Coalition governments in a model of parliamentary democracy," European Journal of Political Economy, Elsevier, vol. 24(3), pages 554-561, September.
    4. Bernhardt, Dan & Campuzano, Larissa & Squintani, Francesco & Câmara, Odilon, 2009. "On the benefits of party competition," Games and Economic Behavior, Elsevier, vol. 66(2), pages 685-707, July.
    5. Dhillon, Amrita, "undated". "Political Parties and Coalition Formation," Economic Research Papers 269591, University of Warwick - Department of Economics.
    6. Dotti, Valerio, 2019. "Political Parties and Policy Outcomes. Do Parties Block Reforms?," MPRA Paper 100227, University Library of Munich, Germany.
    7. 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.

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