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Group size and decision rules in legislative bargaining

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  • Miller Moya, Luis Miguel
  • Vanberg, Christoph

Abstract

We conduct experiments to investigate the effects of different majority requirements on bargaining outcomes in small and large groups. In particular, we use a Baron-Ferejohn protocol and investigate the effects of decision rules on delay (number of bargaining rounds needed to reach agreement) and measures of "fairness" (inclusiveness of coalitions, equality of the distribution within a coalition). We find that larger groups and unanimity rule are associated with significantly larger decision making costs in the sense that first round proposals more often fail, leading to more costly delay. The higher rate of failure under unanimity rule and in large groups is a combination of three facts: (1) in these conditions, a larger number of individuals must agree, (2) an important fraction of individuals reject offers below the equal share, and (3) proposers demand more (relative to the equal share) in large groups.

Suggested Citation

  • Miller Moya, Luis Miguel & Vanberg, Christoph, 2014. "Group size and decision rules in legislative bargaining," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:11746
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    References listed on IDEAS

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    1. John Kagel & Hankyoung Sung & Eyal Winter, 2010. "Veto power in committees: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 13(2), pages 167-188, June.
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    3. Guillaume Fréchette & John H. Kagel & Massimo Morelli, 2005. "Behavioral Identification in Coalitional Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Econometrica, Econometric Society, vol. 73(6), pages 1893-1937, November.
    4. Luis Miller & Christoph Vanberg, 2013. "Decision costs in legislative bargaining: an experimental analysis," Public Choice, Springer, vol. 155(3), pages 373-394, June.
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