Coalition formation for unpopular reform in the presence of private reputation costs
This paper studies coalition formation under asymmetric information. An outside party offers private payments in order to influence the collective decision over an unpopular reform. The willingness to accept such payments is private information. The paper demonstrates that a supermajority coalition induces truth-telling and secures the implementation of the decision for a price close to the full information minimal winning coalition price. On the contrary, if the minimal winning coalition is formed, then no revelation is possible.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 621 181 1776
Fax: +49 621 181 1774
Web page: http://www2.vwl.uni-mannheim.de/10.1.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Felgenhauer, Mike & Grüner, Hans Peter, 2003.
"Committees and special interests,"
Working Paper Series
0293, European Central Bank.
- Diermeier, Daniel & Merlo, Antonio, 1998.
"Government Turnover in Parliamentary Democracies,"
98-31, C.V. Starr Center for Applied Economics, New York University.
- Diermeier, Daniel & Merlo, Antonio, 1998. "Government turnover in parliamentary democracies," Bulletins 7453, University of Minnesota, Economic Development Center.
- Daniel Diermeier & Antonio Merlo, 1998. "Government Turnover in Parliamentary Democracies," Discussion Papers 1232, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Persson, T. & Roland, G. & Tabellini, G., 1997.
"Comparative Politics and Public Finance,"
633, Stockholm - International Economic Studies.
- Torsten Persson & Gerard Roland & Guido Tabellini, . "Comparative Politics and Public Finance," Working Papers 114, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Persson, Torsten & Roland, Gérard & Tabellini, Guido, 1997. "Comparative Politics and Public Finance," CEPR Discussion Papers 1737, C.E.P.R. Discussion Papers.
- Persson, Torsten & Roland , Gérard & Tabellini, Guido, 1997. "Comparative Politics and Public Finance," Seminar Papers 633, Stockholm University, Institute for International Economic Studies.
- David Klingaman, 1969. "A note on a cyclical majority problem," Public Choice, Springer, vol. 6(1), pages 99-101, March.
- Crawford, Vincent P & Sobel, Joel, 1982.
"Strategic Information Transmission,"
Econometric Society, vol. 50(6), pages 1431-51, November.
- Tsung‐Sheng Tsai & C. C. Yang, 2010. "On Majoritarian Bargaining With Incomplete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 959-979, November.
- Dal Bo, E., 2000.
Economics Series Working Papers
9939, University of Oxford, Department of Economics.
- Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January.
- Diermeier, Daniel & Eraslan, Hulya & Merlo, Antonio, 2002. "Coalition governments and comparative constitutional design," European Economic Review, Elsevier, vol. 46(4-5), pages 893-907, May.
When requesting a correction, please mention this item's handle: RePEc:mnh:wpaper:33006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Katharina Rautenberg)
If references are entirely missing, you can add them using this form.