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Simple dynamics of legislative bargaining: coalitions and proposal power

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  • David P. Baron

    (Stanford University)

Abstract

Most public policies continue in effect until changed, and many are stable for extended periods even though they could be changed at any time. This paper presents a simple approach to characterizing Markov perfect equilibria of dynamic legislative bargaining games with stable policies and durable coalitions. The approach involves satisfying proposer and partner incentive constraints when the coalition is formed and challenger defection and replacement constraints once the coalition has been formed. The approach provides a natural definition of coalition membership and facilitates characterization of the trade-off between internal and external proposal power. Surplus coalitions sacrifice external proposal power for increased internal proposal power, and the coalition size that maximizes proposal power is strictly decreasing in the discount factor and strictly increasing in the majority requirement.

Suggested Citation

  • David P. Baron, 2019. "Simple dynamics of legislative bargaining: coalitions and proposal power," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(1), pages 319-344, February.
    • Handle: RePEc:spr:joecth:v:67:y:2019:i:1:d:10.1007_s00199-017-1090-8
    DOI: 10.1007/s00199-017-1090-8
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    References listed on IDEAS

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    Cited by:

    1. Jeon, Jee Seon & Hwang, Ilwoo, 2022. "The emergence and persistence of oligarchy: A dynamic model of endogenous political power," Journal of Economic Theory, Elsevier, vol. 201(C).
    2. Hakan Genc & Serkan Kucuksenel, 2019. "Bargaining in legislatures over private and public goods with endogenous recognition," Public Choice, Springer, vol. 181(3), pages 351-373, December.
    3. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    4. Hans Gersbach & Stephan Imhof & Oriol Tejada, 2021. "Channeling the final say in politics: a simple mechanism," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(1), pages 151-183, February.
    5. Jan Klingelhöfer, 2021. "Competitive elections, incumbency advantage, and accountability," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1397-1428, June.
    6. Hülya Eraslan & Kirill S. Evdokimov & Jan Zápal, 2022. "Dynamic Legislative Bargaining," Springer Books, in: Emin Karagözoğlu & Kyle B. Hyndman (ed.), Bargaining, chapter 0, pages 151-175, Springer.
    7. Marco Battaglini, 2021. "Coalition Formation in Legislative Bargaining," Journal of Political Economy, University of Chicago Press, vol. 129(11), pages 3206-3258.

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    More about this item

    Keywords

    Dynamic legislative bargaining; Coalitions; Proposal power;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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