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The Paradox of Coalition Trading

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  • Josep M. Colomer
  • Florencio Martínez

Abstract

We present a model of coalition formation in a multiparty and multiparliament system in which several parties can agree on simultaneously exchanging their votes in a set of parliaments. Given this possibility, a party, acting rationally in its own self-interest, could accept sharing oversized majority coalitions in some parliaments with numerically superfluous partners. We present a formal argument in instances with diverse numbers of parties and parliaments. We propose a newly invented and refined parliamentary power index in order to measure and compare the benefits of different coalition strategies. We also present empirical evidence of situations prone and adverse to this paradoxical but rationally self-interested behaviour by parties acting in local parliaments in Spain.

Suggested Citation

  • Josep M. Colomer & Florencio Martínez, 1995. "The Paradox of Coalition Trading," Journal of Theoretical Politics, , vol. 7(1), pages 41-63, January.
    • Handle: RePEc:sae:jothpo:v:7:y:1995:i:1:p:41-63
    DOI: 10.1177/0951692895007001003
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    References listed on IDEAS

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    1. Riker, William H. & Brams, Steven J., 1973. "The Paradox of Vote Trading," American Political Science Review, Cambridge University Press, vol. 67(4), pages 1235-1247, December.
    2. James Enelow, 1986. "The stability of logrolling: An expectations approach," Public Choice, Springer, vol. 51(3), pages 285-294, January.
    3. Shapley, L. S. & Shubik, Martin, 1954. "A Method for Evaluating the Distribution of Power in a Committee System," American Political Science Review, Cambridge University Press, vol. 48(3), pages 787-792, September.
    4. R J Johnston, 1978. "On the Measurement of Power: Some Reactions to Laver," Environment and Planning A, , vol. 10(8), pages 907-914, August.
    5. Taylor, Michael, 1972. "On The Theory of Government Coalition Formation," British Journal of Political Science, Cambridge University Press, vol. 2(3), pages 361-373, July.
    6. Leiserson, Michael, 1968. "Factions and Coalitions in One-Party Japan: An Interpretation Based on the Theory of Games," American Political Science Review, Cambridge University Press, vol. 62(3), pages 770-787, September.
    7. Browne, Eric C. & Franklin, Mark N., 1973. "Aspects of Coalition Payoffs in European Parliamentary Democracies," American Political Science Review, Cambridge University Press, vol. 67(2), pages 453-469, June.
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    Cited by:

    1. Thimann, Christian & Reynaud, Julien & Gatarek, Lukasz, 2007. "Proximity and linkages among coalition participants: a new voting power measure applied to the International Monetary Fund," Working Paper Series 819, European Central Bank.
    2. Fabien Lange & László Kóczy, 2013. "Power indices expressed in terms of minimal winning coalitions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(2), pages 281-292, July.
    3. Julien Reynaud & Fabien Lange & Łukasz Gątarek & Christian Thimann, 2011. "Proximity in Coalition Building," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 3(3), pages 111-132, September.

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