IDEAS home Printed from https://ideas.repec.org/p/ecm/feam04/688.html
   My bibliography  Save this paper

Bargaining and vetoing

Author

Listed:
  • Hankyoung Sung

Abstract

This paper studies the bargaining game between the president and the congress when these two players have conflicting claims to a fixed amount of resources. I distinguish between situations of "pure divided government", that is when the congress is united "against" the president, and the situations of "impure divided government", that is when the congress itself is divided (equal power of the two parties). The pure divided government case can be represented as a bilateral bargaining game, whereas the impure case needs to be represented as a three-player game. In both situations we assume the president is a veto player, who can exercise veto power only a finite number of times, consistent with the real US constitutional constraints. I will show the consequences of these modelling choices for the equilibrium payoffs of the various players, and I will suggest interesting consequences for the optimal timing choice by the congress, i.e. for the optimal time to make an offer that needs the approval of the president. In addition, I will estimate my conjectures using the States data as emprical applications

Suggested Citation

  • Hankyoung Sung, 2004. "Bargaining and vetoing," Econometric Society 2004 Far Eastern Meetings 688, Econometric Society.
    • Handle: RePEc:ecm:feam04:688
    as

    Download full text from publisher

    File URL: http://repec.org/esFEAM04/up.16376.1080706037.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
    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.
    3. Winter, Eyal, 1996. "Voting and Vetoing," American Political Science Review, Cambridge University Press, vol. 90(4), pages 813-823, December.
    4. Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
    5. Fréchette, Guillaume R. & Kagel, John H. & Lehrer, Steven F., 2003. "Bargaining in Legislatures: An Experimental Investigation of Open versus Closed Amendment Rules," American Political Science Review, Cambridge University Press, vol. 97(2), pages 221-232, May.
    6. David M. Primo, 2002. "Rethinking Political Bargaining: Policymaking with a Single Proposer," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(2), pages 411-427, October.
    7. Morelli, Massimo, 1999. "Demand Competition and Policy Compromise in Legislative Bargaining," American Political Science Review, Cambridge University Press, vol. 93(4), pages 809-820, December.
    8. Harrington, Joseph E, Jr, 1990. "The Power of the Proposal Maker in a Model of Endogenous Agenda Formation," Public Choice, Springer, vol. 64(1), pages 1-20, January.
    9. Shaked, Avner & Sutton, John, 1984. "Involuntary Unemployment as a Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 52(6), pages 1351-1364, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cho, Seok-ju & Duggan, John, 2009. "Bargaining foundations of the median voter theorem," Journal of Economic Theory, Elsevier, vol. 144(2), pages 851-868, March.
    2. James M. Snyder Jr. & Michael M. Ting & Stephen Ansolabehere, 2005. "Legislative Bargaining under Weighted Voting," American Economic Review, American Economic Association, vol. 95(4), pages 981-1004, September.
    3. Frechette, Guillaume & Kagel, John H. & Morelli, Massimo, 2005. "Nominal bargaining power, selection protocol, and discounting in legislative bargaining," Journal of Public Economics, Elsevier, vol. 89(8), pages 1497-1517, August.
    4. Tasos Kalandrakis, 2006. "Proposal Rights and Political Power," American Journal of Political Science, John Wiley & Sons, vol. 50(2), pages 441-448, April.
    5. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    6. Chessa, Michela & Hanaki, Nobuyuki & Lardon, Aymeric & Yamada, Takashi, 2023. "An experiment on the Nash program: A comparison of two strategic mechanisms implementing the Shapley value," Games and Economic Behavior, Elsevier, vol. 141(C), pages 88-104.
    7. Herings, P. Jean-Jacques & Meshalkin, Andrey & Predtetchinski, Arkadi, 2018. "Subgame perfect equilibria in majoritarian bargaining," Journal of Mathematical Economics, Elsevier, vol. 76(C), pages 101-112.
    8. Matthias Dahm & Amihai Glazer, 2012. "How An Agenda Setter Induces Legislators to Adopt Policies They Oppose," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2012-11-ccr, Condorcet Center for political Economy.
    9. Hsu, Li-Chen & Yang, C.C. & Yang, Chun-Lei, 2008. "Positive- versus zero-sum majoritarian ultimatum games: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 498-510, December.
    10. Guillaume Fréchette & John H. Kagel & Massimo Morelli, 2005. "Behavioral Identification in Coalitional Bargaining: An Experimental Analysis of Demand Bargaining and Alternating Offers," Econometrica, Econometric Society, vol. 73(6), pages 1893-1937, November.
    11. Montero, Maria, 2006. "Noncooperative foundations of the nucleolus in majority games," Games and Economic Behavior, Elsevier, vol. 54(2), pages 380-397, February.
    12. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2021. "An Experiment on the Nash Program: Comparing two Mechanisms Implementing the Shapley Value," GREDEG Working Papers 2021-07, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    13. Michela Chessa & Nobuyuki Hanaki & Aymeric Lardon & Takashi Yamada, 2022. "An experiment on the Nash program: Comparing two strategic mechanisms implementing the Shapley value," ISER Discussion Paper 1175, Institute of Social and Economic Research, Osaka University.
    14. Andrzej Baranski & Rebecca Morton, 2022. "The determinants of multilateral bargaining: a comprehensive analysis of Baron and Ferejohn majoritarian bargaining experiments," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1079-1108, September.
    15. Dahm, Matthias & Glazer, Amihai, 2015. "A carrot and stick approach to agenda-setting," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 465-480.
    16. Pohan Fong, 2008. "Endogenous Limits on Proposal Power," Discussion Papers 1465, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    17. Nunnari, Salvatore & Zapal, Jan, 2016. "Gambler's fallacy and imperfect best response in legislative bargaining," Games and Economic Behavior, Elsevier, vol. 99(C), pages 275-294.
    18. Maria Gallego, David Scoones, 2005. "The Art of Compromise," Working Papers eg0042, Wilfrid Laurier University, Department of Economics, revised 2005.
    19. Gantner, Anita & Horn, Kristian & Kerschbamer, Rudolf, 2016. "Fair and efficient division through unanimity bargaining when claims are subjective," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 56-73.
    20. Daniel Diermeier & Pohan Fong, 2011. "Bargaining over the budget," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(3), pages 565-589, April.

    More about this item

    Keywords

    veto player; restriction of the veto right;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:feam04:688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.