Hanging together or being hung separately: The strategic power of coalitions where bargaining occurs with incomplete information
What is the strategic role of membership in an intergovernmental group with unanimity requirements if the group negotiates with an external player in a setting with incomplete information? Being in such a group has a strategic effect compared to negotiating as a stand-alone player and reduces the demands of the outside player: being in a group lends additional bargaining power. Negotiating as a group may also cause more inefficiencies due to bargaining failure, and this might harm the intergovernmental group. We uncover the role of preference alignment and preference independence between members of the coalition group for equilibrium payoffs and welfare effects. In this analysis we also distinguish between coalition groups with and without side payments. Overall, coalition groups tend to perform well for the members of the coalition group in comparison to fully decentralized negotiations, particularly if the objectives of the members of the coalition group are not always perfectly aligned.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: ++49 - 30 - 25491 - 0
Fax: ++49 - 30 - 25491 - 684
Web page: http://www.wzb.eu/
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.:
- David Stasavage, 2002. "Credible Commitment in Early Modern Europe: North and Weingast Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 155-186, April.
- Philip Bond & Hulya Eraslan, 2008.
"Strategic Voting over Strategic Proposals,"
Economics Working Paper Archive
547, The Johns Hopkins University,Department of Economics.
- Fritz W. Scharpf, 2006. "The Joint-Decision Trap Revisited," Journal of Common Market Studies, Wiley Blackwell, vol. 44, pages 845-864, November.
- Jupille, Joseph, 1999. "The European Union and International Outcomes," International Organization, Cambridge University Press, vol. 53(02), pages 409-425, March.
- Paola Manzini & Marco Mariotti, 2009. "Alliances and negotiations: an incomplete information example," Review of Economic Design, Springer, vol. 13(3), pages 195-203, September.
- Hideo Konishi & Debraj Ray, 2000.
"Coalition Formation as a Dynamic Process,"
Boston College Working Papers in Economics
478, Boston College Department of Economics, revised 15 Apr 2002.
- Paola Manzini & Marco Mariotti, 2000.
"Alliances and Negotiations,"
424, Queen Mary University of London, School of Economics and Finance.
- Leeds, Brett Ashley, 2003. "Alliance Reliability in Times of War: Explaining State Decisions to Violate Treaties," International Organization, Cambridge University Press, vol. 57(04), pages 801-827, September.
- Meunier, Sophie, 2000. "What Single Voice? European Institutions and EU–U.S. Trade Negotiations," International Organization, Cambridge University Press, vol. 54(01), pages 103-135, December.
- R. Harrison Wagner, 2004. "Bargaining, War, and Alliances," Conflict Management and Peace Science, Peace Science Society (International), vol. 21(3), pages 215-231, July.
- Konrad, Kai A., 2010.
"Information alliances in contests with budget limits,"
Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism"
SP II 2010-21, Social Science Research Center Berlin (WZB).
- Kai Konrad, 2012. "Information alliances in contests with budget limits," Public Choice, Springer, vol. 151(3), pages 679-693, June.
- John C. Harsanyi & Reinhard Selten, 1972. "A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information," Management Science, INFORMS, vol. 18(5-Part-2), pages 80-106, January.
- Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
- Konrad, Kai A., 2012. "Information alliances in contests with budget limits," Munich Reprints in Economics 22072, University of Munich, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:zbw:wzbmbh:spii2013202. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.