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Persistence Of Power: Repeated Multilateral Bargaining

Author

Listed:
  • Marina Agranov

    (California Institute of Technology)

  • Christopher Cotton

    (Queen's University)

  • Chloe Tergiman

    (Penn State University)

Abstract

We develop a model of repeated multilateral bargaining that links cycles via the identity of the agenda setter. In sharp contrast to the standard history-independent equilibrium predictions, in an experiment, we observe stable and persistent coalitions in terms of member identity, allocations to coalition partners, and agenda-setter identity. Our results call into question the validity of restricting attention to static, history-independent strategies in dynamic bargaining games. We show that weakening the standard equilibria concepts to allow players to condition on a single piece of history is enough to generate equilibria which are consistent with observed laboratory outcomes.

Suggested Citation

  • Marina Agranov & Christopher Cotton & Chloe Tergiman, 2016. "Persistence Of Power: Repeated Multilateral Bargaining," Working Paper 1374, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1374
    as

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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1374.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    experiment; legislative bargaining; vote of confidence; legislative decision making; political institutions; dynamic bargaining;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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