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Rhetoric in Legislative Bargaining with Asymmetric Information

  • Ying Chen

    (Arizona State University)

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    But when a policy dimension and a distributive dimension are both present, we show that in equilibrium, the demands by the legislators have some influence on the bargaining outcome but they are not fully informative about the legislators' true preferences. We characterize equilibria under the majority rule and show that equilibrium demands by the legislators can be either cooperative, compromising or tough.

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    Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 1159.

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    Date of creation: 2010
    Date of revision:
    Handle: RePEc:red:sed010:1159
    Contact details of provider: Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA
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    1. Joseph Farrell and Robert Gibbons., 1988. "Cheap Talk Can Matter in Bargaining," Economics Working Papers 8863, University of California at Berkeley.
    2. Yves Breitmoser, 2009. "Demand commitments in majority bargaining or how formateurs get their way," International Journal of Game Theory, Springer, vol. 38(2), pages 183-191, June.
    3. Ambrus, Attila & Takahashi, Satoru, 2008. "Multi-sender cheap talk with restricted state spaces," Theoretical Economics, Econometric Society, vol. 3(1), March.
    4. Juan J. Vidal-Puga, 2004. "Bargaining with commitments," International Journal of Game Theory, Springer, vol. 33(1), pages 129-144, January.
    5. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November.
    6. Tsai, Tsung-Sheng, 2009. "The evaluation of majority rules in a legislative bargaining model," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 674-684, December.
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