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Legislative bargaining with joint production: An experimental study

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  • Merkel, Anna
  • Vanberg, Christoph

Abstract

We conduct 3-person bargaining experiments in which the surplus being divided is produced by completing a prior task. Using a Baron-Ferejohn framework, we investigate how differences in contributions to production affect bargaining under different decision rules. Under unanimity rule, all proposals and agreements constitute convex combinations of the equal and proportional splits. Contrary to our predictions, this pattern largely persists under majority rule. In sharp contrast to prior experiments in which an exogenous surplus is divided, few subjects attempt to build minimum winning coalitions when the surplus is jointly produced.

Suggested Citation

  • Merkel, Anna & Vanberg, Christoph, 2019. "Legislative bargaining with joint production: An experimental study," Working Papers 0670, University of Heidelberg, Department of Economics.
  • Handle: RePEc:awi:wpaper:0670
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    Cited by:

    1. Regine Oexl & Anita Gantner, 2021. "Respecting Entitlements in Legislative Bargaining - A Matter of Preference or Necessity?," Working Papers 2021-25, Faculty of Economics and Statistics, Universität Innsbruck.

    More about this item

    Keywords

    multilateral bargaining; claims; fairness; majority rule; experiments;
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