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Communication in legislative bargaining

Author

Listed:
  • Andrzej Baranski

    (Ohio State University)

  • John H. Kagel

    (Ohio State University)

Abstract

We investigate the Baron-Ferejohn (The American Political Science Review 83(4): 1181–1206, 1989) model of legislative bargaining with cheap talk between the designated proposer and potential coalition partners. Communication results in substantially increased proposer power close to the stationary subgame perfect equilibrium prediction. This is achieved primarily through voters competing with each other to get the proposer to include them in the winning coalition, while arguing for a zero allocation for redundant voters. Voters typically follow through on their stated reservation shares, but proposers often fail to partner with voters making excessively low offers, as these are more likely to be reneged on.

Suggested Citation

  • Andrzej Baranski & John H. Kagel, 2015. "Communication in legislative bargaining," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 59-71, July.
    • Handle: RePEc:spr:jesaex:v:1:y:2015:i:1:d:10.1007_s40881-015-0011-5
    DOI: 10.1007/s40881-015-0011-5
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    References listed on IDEAS

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    1. repec:cty:dpaper:2903 is not listed on IDEAS
    2. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
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    More about this item

    Keywords

    Legislative bargaining; Cheap talk; Bargaining styles;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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