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Party Formation Incollective Decision-Making

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  • Martin J. Osborne
  • Rabee Tourky

Abstract

We study party formation in a general model of collective decisionmaking, modeling parties as agglomerations of policy positions championed by decision-makers. We show that if there are economies of party size and the policy chosen is not beaten by another policy in pairwise voting, then players agglomerate into exactly two parties. This result does not depend on the magnitude of the economies of party size or sensitively on the nature of the individuals' preferences. Our analysis encompasses a wide range of models, including decision-making in committees with costly participation and representative democracy in which the legislature is elected by citizens.

Suggested Citation

  • Martin J. Osborne & Rabee Tourky, 2002. "Party Formation Incollective Decision-Making," Department of Economics - Working Papers Series 844, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:844
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    References listed on IDEAS

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    1. Ignacio Ortuno-Ortin & Anke Gerber, 1998. "Political compromise and endogenous formation of coalitions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(3), pages 445-454.
    2. Massimo Morelli, 2004. "Party Formation and Policy Outcomes under Different Electoral Systems," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(3), pages 829-853.
    3. Nicolaus Tideman & Daniel Richardson, 2000. "Better Voting Methods Through Technology: The Refinement-Manageability Trade-Off in the Single Transferable Vote," Public Choice, Springer, vol. 103(1), pages 13-34, April.
    4. Martin J. Osborne & Al Slivinski, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 65-96.
    5. Jeffrey S. Rosenthal & Martin J. Osborne & Matthew A. Turner, 2000. "Meetings with Costly Participation," American Economic Review, American Economic Association, vol. 90(4), pages 927-943, September.
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    Cited by:

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    2. Siddhartha Bandyopadhyay & Kalyan Chatterjee & Tomas Sjöström, 2013. "Pre-electoral Coalitions and Post-election Bargaining," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 7, pages 129-181, World Scientific Publishing Co. Pte. Ltd..
    3. Dhillon, Amrita, 2003. "Political Parties and Coalition Formation," Economic Research Papers 269591, University of Warwick - Department of Economics.
    4. Bandyopadhyay, Siddhartha & Oak, Mandar P., 2008. "Coalition governments in a model of parliamentary democracy," European Journal of Political Economy, Elsevier, vol. 24(3), pages 554-561, September.
    5. Dotti, Valerio, 2019. "Political Parties and Policy Outcomes. Do Parties Block Reforms?," MPRA Paper 100227, University Library of Munich, Germany.
    6. Benoît Le Maux & Yvon Rocaboy, 2016. "Competition in fragmentation among political coalitions: theory and evidence," Public Choice, Springer, vol. 167(1), pages 67-94, April.
    7. Bernhardt, Dan & Campuzano, Larissa & Squintani, Francesco & Câmara, Odilon, 2009. "On the benefits of party competition," Games and Economic Behavior, Elsevier, vol. 66(2), pages 685-707, July.

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