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Party Formation Incollective 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.

Suggested Citation

  • Martin J. Osborne & Rabee Tourky, 2002. "Party Formation Incollective Decision-Making," Department of Economics - Working Papers Series 844, The University of Melbourne.
  • Handle: RePEc:mlb:wpaper:844
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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-02/844.pdf
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    References listed on IDEAS

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    1. Ignacio Ortuno-Ortin & Anke Gerber, 1998. "Political compromise and endogenous formation of coalitions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(3), pages 445-454.
    2. Massimo Morelli, 2004. "Party Formation and Policy Outcomes under Different Electoral Systems," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 829-853.
    3. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 65-96.
    4. Jeffrey S. Rosenthal & Martin J. Osborne & Matthew A. Turner, 2000. "Meetings with Costly Participation," American Economic Review, American Economic Association, vol. 90(4), pages 927-943, September.
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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. 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.
    3. Dhillon, Amrita, 2004. "Political Parties And Coalition Formation," The Warwick Economics Research Paper Series (TWERPS) 697, University of Warwick, Department of Economics.
    4. Siddhartha Bandyopadhyay & Mandar Oak, 2004. "Party Formation and Coalitional Bargaining in a Model of Proportional Representation," Working Papers 2004.98, Fondazione Eni Enrico Mattei.
    5. 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.

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