The Art of Compromise
Policy is modeled as the outcome of negotiations between two three-party parliamentary states. An election in jurisdiction A determines the composition of the legislature that selects a representative to negotiate an intergovernmental policy agreement with the representative from the legislature of jurisdiction B. Negotiations are modeled using Nash’s (1950) bargaining framework, modified to account for a simultaneous legislative ratification vote. Though agreements favor the legislative representative least willing to compromise, agreements between the bargainers may not follow the ordering of the parties’ ideal policies. An electoral outcome where support for the center party comes from extreme voters may emerge.
|Date of creation:||2005|
|Date of revision:||2005|
|Contact details of provider:|| Postal: 75 University Ave. West, Waterloo, Ontario, N2L 3C5|
Phone: (519) 884-0710 ext 2056
Fax: (519) 884-0201
Web page: http://www.wlu.ca/sbe/economics/
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.:
- Ross Cressman, Maria Gallego, 2005.
"On the Ranking of Bilateral Bargaining Opponents,"
eg0043, Wilfrid Laurier University, Department of Economics, revised 2005.
- Jacques Cremer & Thomas R. Palfrey, 2000.
"Federal Mandates by Popular Demand,"
Journal of Political Economy,
University of Chicago Press, vol. 108(5), pages 905-927, October.
- Crémer, Jacques & Palfrey, Thomas, 2003.
"A Voting Model of Federal Standards with Externalities,"
IDEI Working Papers
182, Institut d'Économie Industrielle (IDEI), Toulouse.
- Crémer, Jacques & Palfrey, Thomas R., 2003. "A Voting Model of Federal Standards with Externalities," Working Papers 1171, California Institute of Technology, Division of the Humanities and Social Sciences.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-518, May.
- Thomson, William, 1994.
"Cooperative models of bargaining,"
Handbook of Game Theory with Economic Applications,
in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 35, pages 1237-1284
- Alesina, Alberto & Rosenthal, Howard, 1996. "A Theory of Divided Government," Econometrica, Econometric Society, vol. 64(6), pages 1311-1341, November.
- 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.
- Dixit, Avinash & Londregan, John, 1998. "Fiscal federalism and redistributive politics," Journal of Public Economics, Elsevier, vol. 68(2), pages 153-180, May.
- Kannai, Yakar, 1977. "Concavifiability and constructions of concave utility functions," Journal of Mathematical Economics, Elsevier, vol. 4(1), pages 1-56, March.
- Stéphane Rottier & Francis Bloch, 2002. "Agenda control in coalition formation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(4), pages 769-788.
- Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
- Ariel Rubinstein, 2010.
"Perfect Equilibrium in a Bargaining Model,"
Levine's Working Paper Archive
252, David K. Levine.
- Diermeier, Daniel & Merlo, Antonio, 2004.
"An empirical investigation of coalitional bargaining procedures,"
Journal of Public Economics,
Elsevier, vol. 88(3-4), pages 783-797, March.
- Daniel Diermeier & Antoni Merlo, 1999. "An Empirical Investigation of Coalitional Bargaining Procedures," Discussion Papers 1267, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Roger B. Myerson & Daniel Diermeier, 1999. "Bicameralism and Its Consequences for the Internal Organization of Legislatures," American Economic Review, American Economic Association, vol. 89(5), pages 1182-1196, December.
- Moravcsik, Andrew, 1991. "Negotiating the Single European Act: national interests and conventional statecraft in the European Community," International Organization, Cambridge University Press, vol. 45(01), pages 19-56, December.
- Persson, Torsten & Tabellini, Guido, 1996. "Federal Fiscal Constitutions: Risk Sharing and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 979-1009, October.
- David P. Baron & Daniel Diermeier, 2001. "Elections, Governments, and Parliaments in Proportional Representation Systems," The Quarterly Journal of Economics, Oxford University Press, vol. 116(3), pages 933-967.
- Levmore, Saul, 1992. "Bicameralism: When are two decisions better than one?," International Review of Law and Economics, Elsevier, vol. 12(2), pages 145-162, June.
- David Austen-Smith, 2000. "Redistributing Income under Proportional Representation," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1235-1269, December.
When requesting a correction, please mention this item's handle: RePEc:wlu:wpaper:eg0042. 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: (Andrei Kovacsik)
If references are entirely missing, you can add them using this form.