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Veto Threats: Rhetoric in a Bargaining Game

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Author Info
Matthews, Steven A

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Abstract

A specific bargaining game is studied, motivated by the speech-making, bill-proposing, and bill-vetoing observed in legislative processes. The game has two players, a chooser and a proposer, with the preferences of the chooser not known to the proposer. The chooser starts the game by talking. Then the proposer proposes an outcome, which the chooser accepts or vetos. Only two kinds of perfect equilibria exist. In the more interesting kind, the chooser tells the proposer which of two sets contains his type. Two proposals are possibly elicited, a compromise proposal and the proposer's favorite proposal. Ironically, only the compromise proposal is ever vetoed. Copyright 1989, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 104 (1989)
Issue (Month): 2 (May)
Pages: 347-69
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Handle: RePEc:tpr:qjecon:v:104:y:1989:i:2:p:347-69

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  1. Palfrey, Thomas R. & Srivastava, Sanjay., 1989. "Efficient Trading Mechanisms with Pre-Play Communication," Working Papers 693, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Albrecht Morgenstern, 2004. "Curbing Power or Progress? Governing with an Opposition Veto," Bonn Econ Discussion Papers bgse10_2004, University of Bonn, Germany. [Downloadable!]
  3. Ulrich Doraszelski & Dino Gerardi & Francesco Squintani, 2003. "Communication and Voting with Double-Sided Information," Contributions to Theoretical Economics, Berkeley Electronic Press, vol. 3(1), pages 1084-1084. [Downloadable!] (restricted)
  4. Fabrice Lehoucq & Gabriel Negretto & Francisco Aparicio & Benito Nacif & Allyson Benton, 2005. "Political Institutions, Policymaking Processes, and Policy Outcomes in Mexico," RES Working Papers 3204, Inter-American Development Bank, Research Department. [Downloadable!]
  5. Chen, Yan & Ordeshook, Peter C., 1993. "Veto Games: Spatial Committees Under Unanimity Rule," Working Papers 847, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  6. Timothy Besley & Rohini Pande, 1998. "Read My Lips: The Political Economy of Information Transmission," STICERD - Theoretical Economics Paper Series 355, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  7. Archishman Chakraborty & Rick Harbaugh, 2002. "Credible Comparisons in Multi-Issue Bargaining," Claremont Colleges Working Papers 2002-04, Claremont Colleges. [Downloadable!]
  8. David Austen-Smith & Jeffrey S. Banks, 1998. "Cheap Talk and Burned Money," Discussion Papers 1245, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  9. Fabrice Lehoucq & Gabriel Negretto & Francisco Aparicio & Benito Nacif & Allyson Benton, 2005. "Instituciones políticas, procesos de diseño de políticas y resultados de las políticas en México," RES Working Papers 3205, Inter-American Development Bank, Research Department. [Downloadable!]
  10. Archishman Chakraborty & Rick Harbaugh, 2003. "Ordinal Cheap Talk," Claremont Colleges Working Papers 2003-05, Claremont Colleges. [Downloadable!]
  11. Ulrich Doraszelski, 1999. "Deliberations with Double-Sided Information," Discussion Papers 1276R, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  12. Groseclose, Timothy J. & McCarty, Nolan, 1999. "The Politics of Blame: Bargaining before an Audience," Research Papers 1617, Stanford University, Graduate School of Business. [Downloadable!]
  13. Robert P. Inman, 1993. "Presidential Leadership and the Reform of Fiscal Policy: Learning from Reagan's Role in TRA 86," NBER Working Papers 4395, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Steven A. Matthews & Andrew Postlewaite, 1992. "On Modeling Cheap Talk in Bayesian Games," Discussion Papers 992, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  15. Steven A. Matthews & M. Okuno-Fujiwara & Andrew Postlewaite, 1990. "Refining Cheap-Talk Equilibria," Discussion Papers 892R, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  16. Steven A. Matthews & Andrew Postlewaite, 1987. "Pre-Play Communication in Two-Person Sealed-Bid Double Auctions," Discussion Papers 744R, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
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