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Group size and decision rules in legislative bargaining

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  • Miller Moya, Luis Miguel
  • Vanberg, Christoph

Abstract

We conduct experiments to investigate the effects of different majority requirements on bargaining outcomes in small and large groups. In particular, we use a Baron-Ferejohn protocol and investigate the effects of decision rules on delay (number of bargaining rounds needed to reach agreement) and measures of "fairness" (inclusiveness of coalitions, equality of the distribution within a coalition). We find that larger groups and unanimity rule are associated with significantly larger decision making costs in the sense that first round proposals more often fail, leading to more costly delay. The higher rate of failure under unanimity rule and in large groups is a combination of three facts: (1) in these conditions, a larger number of individuals must agree, (2) an important fraction of individuals reject offers below the equal share, and (3) proposers demand more (relative to the equal share) in large groups.

Suggested Citation

  • Miller Moya, Luis Miguel & Vanberg, Christoph, 2014. "Group size and decision rules in legislative bargaining," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:11746
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    6. Agranov, Marina & Tergiman, Chloe, 2014. "Communication in multilateral bargaining," Journal of Public Economics, Elsevier, vol. 118(C), pages 75-85.
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    8. Luis Miller & Christoph Vanberg, 2013. "Decision costs in legislative bargaining: an experimental analysis," Public Choice, Springer, vol. 155(3), pages 373-394, June.
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    Citations

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    Cited by:

    1. Miller, Luis & Montero, Maria & Vanberg, Christoph, 2018. "Legislative bargaining with heterogeneous disagreement values: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 107(C), pages 60-92.
    2. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    3. Faralla, Valeria & Borà, Guido & Innocenti, Alessandro & Novarese, Marco, 2020. "Promises in group decision making," Research in Economics, Elsevier, vol. 74(1), pages 1-11.
    4. Tremewan, James & Vanberg, Christoph, 2018. "Voting rules in multilateral bargaining: using an experiment to relax procedural assumptions," Working Papers 0651, University of Heidelberg, Department of Economics.
    5. Koetter, Michael & Krause, Thomas & Tonzer, Lena, 2019. "Delay determinants of European Banking Union implementation," European Journal of Political Economy, Elsevier, vol. 58(C), pages 1-20.
    6. 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.
    7. 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.
    8. Maaser, Nicola & Paetzel, Fabian & Traub, Stefan, 2019. "Power illusion in coalitional bargaining: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 117(C), pages 433-450.
    9. Guillaume R. Fréchette & Emanuel Vespa, 2017. "The determinants of voting in multilateral bargaining games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 3(1), pages 26-43, July.
    10. Kim, Duk Gyoo, 2023. "“One Bite at the apple”: Legislative bargaining without replacement," Journal of Economic Psychology, Elsevier, vol. 95(C).
    11. Jan Zápal, 2017. "Crafting consensus," Public Choice, Springer, vol. 173(1), pages 169-200, October.
    12. Anna Merkel & Christoph Vanberg, 2020. "Legislative bargaining with costly communication," Public Choice, Springer, vol. 183(1), pages 3-27, April.
    13. Franziska Heinicke & Wladislaw Mill & Henrik Orzen, 2024. "Bargaining Under the Threat of a Nuclear Option," CRC TR 224 Discussion Paper Series crctr224_2024_559, University of Bonn and University of Mannheim, Germany.
    14. Sauermann, Jan & Beckmann, Paul, 2019. "The influence of group size on distributional fairness under voting by veto," European Journal of Political Economy, Elsevier, vol. 56(C), pages 90-102.
    15. Merkel, Anna & Vanberg, Christoph, 2023. "Multilateral bargaining with subjective claims under majority vs. unanimity rule: An experiment," Journal of Economic Psychology, Elsevier, vol. 95(C).

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    More about this item

    Keywords

    majority rule; unanimity rule; legislative bargaining;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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