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Orchestrating Organizational Politics: Baron and Ferejohn Meet Tullock

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  • Qiang Fu
  • Zenan Wu
  • Yuxuan Zhu

Abstract

This paper examines the optimal organizational rules that govern the process of dividing a fixed surplus. The process is modeled as a sequential multilateral bargaining game with costly recognition. The designer sets the voting rule -- i.e., the minimum number of votes required to approve a proposal -- and the mechanism for proposer recognition, which is modeled as a biased generalized lottery contest. We show that for diverse design objectives, the optimum can be achieved by a dictatorial voting rule, which simplifies the game into a standard biased contest model.

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  • Qiang Fu & Zenan Wu & Yuxuan Zhu, 2024. "Orchestrating Organizational Politics: Baron and Ferejohn Meet Tullock," Papers 2411.08419, arXiv.org.
    • Handle: RePEc:arx:papers:2411.08419
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    References listed on IDEAS

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    1. Konrad, Kai A., 2002. "Investment in the absence of property rights; the role of incumbency advantages," European Economic Review, Elsevier, vol. 46(8), pages 1521-1537, September.
    2. Banks, Jeffrey s. & Duggan, John, 2000. "A Bargaining Model of Collective Choice," American Political Science Review, Cambridge University Press, vol. 94(1), pages 73-88, March.
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