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Demand Bargaining and Proportional Payoffs in Legislatures

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Author Info
Maria Montero () (University of Nottingham)
Juan Vidal-Puga () (University of Vigo)

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Abstract

We study a majoritarian bargaining model in which the parties make payoff demands in decreasing order of voting weight. If the game is constant-sum and homogeneous, the unique subgame perfect equilibrium is such that the minimal winning coalition of the players who move first forms and payoffs are proportional to the voting weights.

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Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2006-11.

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Date of creation: Nov 2006
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Handle: RePEc:cdx:dpaper:2006-11

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  1. Selten,Reinhard, . "A demand commitment model of coalition bargaining," Discussion Paper Serie B 191, University of Bonn, Germany.
  2. (*), Y. Stephen Chiu & Ani Dasgupta, 1998. "On implementation via demand commitment games," International Journal of Game Theory, Springer, vol. 27(2), pages 161-189. [Downloadable!] (restricted)
  3. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January. [Downloadable!] (restricted)
  4. Juan J. Vidal-Puga, 2004. "Bargaining with commitments," International Journal of Game Theory, Springer, vol. 33(1), pages 129-144, January. [Downloadable!] (restricted)
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  5. Daniel Diermeier & Hulya Eraslan & Antonio Merlo, 2003. "A Structural Model of Government Formation," Econometrica, Econometric Society, vol. 71(1), pages 27-70, January. [Downloadable!] (restricted)
  6. Morelli, Massimo & Montero, Maria, 2003. "The demand bargaining set: general characterization and application to majority games," Games and Economic Behavior, Elsevier, vol. 42(1), pages 137-155, January. [Downloadable!] (restricted)
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  7. Maria Montero & Juan Vidal-Puga, 2005. "Demand commitment in legislative bargaining," Game Theory and Information 0511005, EconWPA. [Downloadable!]
  8. Bennett, E. & Van Damme, E., 1990. "Demand Commitment Bargaining: -The Case Of Apex Games," Papers 9062, Tilburg - Center for Economic Research.
  9. Jackson, Matthew O. & Moselle, Boaz, 2002. "Coalition and Party Formation in a Legislative Voting Game," Journal of Economic Theory, Elsevier, vol. 103(1), pages 49-87, March. [Downloadable!] (restricted)
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  10. Norman, Peter, 2002. "Legislative Bargaining and Coalition Formation," Journal of Economic Theory, Elsevier, vol. 102(2), pages 322-353, February. [Downloadable!] (restricted)
  11. Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February. [Downloadable!] (restricted)
  12. Banks, Jeffrey S. & Duggan, John, 1999. "A Bargaining Model of Collective Choice," Working Papers 1053, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  13. Winter, Eyal, 1994. "The Demand Commitment Bargaining and Snowballing Cooperation," Economic Theory, Springer, vol. 4(2), pages 255-73, March.
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