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Persistence of Power: Repeated Multilateral Bargaining with Endogenous Agenda Setting Authority

Author

Listed:
  • Marina Agranov

    (California Institute of Technology)

  • Christopher Cotton

    (Queen's University)

  • Chloe Tergiman

    (Penn State University)

Abstract

In models of dynamic multilateral bargaining, the literature tends to focus on stationary subgame perfect or stationary Markov perfect equilibria, which restrict attention to forward-looking, history-independent strategies. Evidence supporting such refinements come from environments in which proposal power is exogenous and the incentives for players to develop cooperative relationships are minimized. However, in many environments including legislative bargaining, agenda-setting power is endogenous and it is commonplace for players to form coalitions and establish reputations. Through a series of lab experiments, we show that in repeated environments, standard equilibrium refinements may predict some aspects of the data when outcomes when proposal power is randomly assigned, but do not predict outcomes when proposal power is endogenous.

Suggested Citation

  • Marina Agranov & Christopher Cotton & Chloe Tergiman, 2019. "Persistence of Power: Repeated Multilateral Bargaining with Endogenous Agenda Setting Authority," Working Paper 1414, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1414
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    Cited by:

    1. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    2. Andrzej Baranski & Caleb A. Cox, 2023. "Communication in multilateral bargaining with joint production," Experimental Economics, Springer;Economic Science Association, vol. 26(1), pages 55-77, March.
    3. repec:nad:wpaper:20220080 is not listed on IDEAS
    4. Hülya Eraslan & Kirill S. Evdokimov & Jan Zápal, 2022. "Dynamic Legislative Bargaining," Springer Books, in: Emin Karagözoğlu & Kyle B. Hyndman (ed.), Bargaining, chapter 0, pages 151-175, Springer.
    5. Marina Azzimonti & Laura Karpuska & Gabriel Mihalache, 2023. "Bargaining Over Taxes And Entitlements In The Era Of Unequal Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(3), pages 893-941, August.
    6. Andrzej Baranski & Diogo Geraldes & Ada Kovaliukaite & James Tremewan, 2024. "An Experiment on Gender Representation in Majoritarian Bargaining," Management Science, INFORMS, vol. 70(10), pages 6622-6636, October.
    7. Baranski, Andrzej & Haas, Nicholas, 2023. "The timing of communication and retaliation in bargaining: An experimental study," Journal of Economic Psychology, Elsevier, vol. 96(C).
    8. Marina Azzimonti & Gabriel P. Mihalache & Laura Karpuska, 2020. "Bargaining over Taxes and Entitlements," NBER Working Papers 27595, National Bureau of Economic Research, Inc.
    9. Sauermann, Jan & Schwaninger, Manuel & Kittel, Bernhard, 2022. "Making and breaking coalitions: Strategic sophistication and prosociality in majority decisions," European Journal of Political Economy, Elsevier, vol. 71(C).

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    More about this item

    Keywords

    legislative bargaining; laboratory experiment; history independence; repeated games;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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