IDEAS home Printed from https://ideas.repec.org/p/not/notcdx/2011-10.html
   My bibliography  Save this paper

Bargaining over an Endogenous Agenda

Author

Listed:
  • Vincent Anesi

    (University of Nottingham)

  • Daniel J. Seidmann

    (University of Nottingham)

Abstract

We present a model of bargaining in which a committee searches over the policy space, successively amending the default by voting over proposals. Bargaining ends when proposers are unable or unwilling to amend the existing default, which is then implemented. We characterize the policies which can be implemented from any initial default in a pure strategy stationary Markov perfect equilibrium for an interesting class of environments including multi-dimensional and infinite policy spaces. Minimumwinning coalitions may not form, and the set of equilibrium policies may be unaffected by a change in the set of proposers. The set of stable policies (which are implemented, once reached as default) forms a weakly stable set; and conversely, any weakly stable set is supported by some equilibrium. If the policy space is well ordered then the committee implements the ideal policy of the last proposer in a subset of a weakly stable set. However, this result does not generalize to other cases, allowing us to explore the effects of protocol manipulation. Variations in the quota and in the number of proposers may have surprising effects on the set of stable decisions. We also show that equilibria of our model are contemporaneous perfect ?-equilibria of a related model of repeated implementation with an evolving default; and that stable decisions in semi-Markovian equilibria form the largest consistent set.

Suggested Citation

  • Vincent Anesi & Daniel J. Seidmann, 2011. "Bargaining over an Endogenous Agenda," Discussion Papers 2011-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2011-10
    as

    Download full text from publisher

    File URL: https://www.nottingham.ac.uk/cedex/documents/papers/2011-10.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. Marco Battaglini & Stephen Coate, 2007. "Inefficiency in Legislative Policymaking: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 97(1), pages 118-149, March.
    3. R.J. Aumann & S. Hart (ed.), 2002. "Handbook of Game Theory with Economic Applications," Handbook of Game Theory with Economic Applications, Elsevier, edition 1, volume 3, number 3.
    4. Ordeshook,Peter C., 1986. "Game Theory and Political Theory," Cambridge Books, Cambridge University Press, number 9780521315937, January.
    5. Larcker, David F. & Ormazabal, Gaizka & Taylor, Daniel J., 2011. "The market reaction to corporate governance regulation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 431-448, August.
    6. Vincent Anesi, 2012. "A new old solution for weak tournaments," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(4), pages 919-930, October.
    7. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2012. "Dynamics and Stability of Constitutions, Coalitions, and Clubs," American Economic Review, American Economic Association, vol. 102(4), pages 1446-1476, June.
    8. Tasos Kalandrakis, 2010. "Minimum winning coalitions and endogenous status quo," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(4), pages 617-643, October.
    9. Battaglini, Marco & Nunnari, Salvatore & Palfrey, Thomas R., 2012. "Legislative Bargaining and the Dynamics of Public Investment," American Political Science Review, Cambridge University Press, vol. 106(2), pages 407-429, May.
    10. Kevin Roberts, 2007. "Condorcet cycles? A model of intertemporal voting," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(3), pages 383-404, October.
    11. John Duggan & Tasos Kalandrakis, 2011. "A Newton collocation method for solving dynamic bargaining games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(3), pages 611-650, April.
    12. Wioletta Dziuda & Antoine Loeper, 2016. "Dynamic Collective Choice with Endogenous Status Quo," Journal of Political Economy, University of Chicago Press, vol. 124(4), pages 1148-1186.
    13. Anesi, Vincent, 2010. "Noncooperative foundations of stable sets in voting games," Games and Economic Behavior, Elsevier, vol. 70(2), pages 488-493, November.
    14. Wilson, Robert, 1971. "Stable coalition proposals in majority-rule voting," Journal of Economic Theory, Elsevier, vol. 3(3), pages 254-271, September.
    15. Diermeier, Daniel & Fong, Pohan, 2012. "Characterization of the von Neumann–Morgenstern stable set in a non-cooperative model of dynamic policy-making with a persistent agenda setter," Games and Economic Behavior, Elsevier, vol. 76(1), pages 349-353.
    16. Olivier Compte & Philippe Jehiel, 2010. "Bargaining and Majority Rules: A Collective Search Perspective," Journal of Political Economy, University of Chicago Press, vol. 118(2), pages 189-221, April.
    17. Kalandrakis, Anastassios, 2004. "A three-player dynamic majoritarian bargaining game," Journal of Economic Theory, Elsevier, vol. 116(2), pages 294-322, June.
    18. Daniel Diermeier & Pohan Fong, 2011. "Legislative Bargaining with Reconsideration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 947-985.
    19. Volden, Craig & Wiseman, Alan E., 2007. "Bargaining in Legislatures over Particularistic and Collective Goods," American Political Science Review, Cambridge University Press, vol. 101(1), pages 79-92, February.
    20. Konishi, Hideo & Ray, Debraj, 2003. "Coalition formation as a dynamic process," Journal of Economic Theory, Elsevier, vol. 110(1), pages 1-41, May.
    21. Duggan, John & Kalandrakis, Tasos, 2012. "Dynamic legislative policy making," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1653-1688.
    22. , & , J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    23. Vartiainen, Hannu, 2011. "Dynamic coalitional equilibrium," Journal of Economic Theory, Elsevier, vol. 146(2), pages 672-698, March.
    24. Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining in Standing Committees," Discussion Papers 2012-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    25. Hortala-Vallve, Rafael, 2011. "Generous Legislators? A Description of Vote Trading Agreements," Quarterly Journal of Political Science, now publishers, vol. 6(2), pages 179-196, September.
    26. John C. Harsanyi, 1974. "An Equilibrium-Point Interpretation of Stable Sets and a Proposed Alternative Definition," Management Science, INFORMS, vol. 20(11), pages 1472-1495, July.
    27. Lucas, William F., 1992. "Von Neumann-Morgenstern stable sets," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 17, pages 543-590, Elsevier.
    28. Vincent Anesi, 2006. "Committees with Farsighted Voters: A New Interpretation of Stable Sets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 27(3), pages 595-610, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vincent Anesi & Mikhail Safronov, 2021. "Cloturing Deliberation," DEM Discussion Paper Series 21-03, Department of Economics at the University of Luxembourg.
    2. Anesi, Vincent & Duggan, John, 2018. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society, vol. 13(2), May.
    3. Dutta, Bhaskar & Vartiainen, Hannu, 2020. "Coalition formation and history dependence," Theoretical Economics, Econometric Society, vol. 15(1), January.
    4. 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.
    5. Liang Mao, 2017. "Subgame perfect equilibrium in a bargaining model with deterministic procedures," Theory and Decision, Springer, vol. 82(4), pages 485-500, April.
    6. 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.
    7. Vincent Anesi & Mikhail Safronov, 2023. "Deciding When To Decide: Collective Deliberation And Obstruction," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 757-781, May.
    8. Mao, Liang, 2015. "Subgame Perfect Equilibrium in a Bargaining Model with Deterministic Procedures," MPRA Paper 67859, University Library of Munich, Germany.
    9. Bhaskar Dutta & Hannu Vartiainen, 2018. "Coalition Formation and History Dependence," Working Papers 1006, Ashoka University, Department of Economics.
    10. 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).
    11. , & , J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    12. Salvador Barberà & Anke Gerber, 2022. "Deciding On What To Decide," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(1), pages 37-61, February.
    13. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    14. S. Nageeb Ali & B. Douglas Bernheim & Alexander W. Bloedel & Silvia Console Battilana, 2022. "Who Controls the Agenda Controls the Polity," Papers 2212.01263, arXiv.org.
    15. Berry, Christopher R. & Fowler, Anthony, 2018. "Congressional committees, legislative influence, and the hegemony of chairs," Journal of Public Economics, Elsevier, vol. 158(C), pages 1-11.
    16. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    17. Vincent Anesi & John Duggan, 2015. "Dynamic Bargaining and External Stability with Veto Players," Discussion Papers 2015-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    18. Anesi, Vincent & Duggan, John, 2017. "Dynamic bargaining and stability with veto players," Games and Economic Behavior, Elsevier, vol. 103(C), pages 30-40.
    19. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    20. Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining in Standing Committees," Discussion Papers 2012-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

    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. Anesi, Vincent & Seidmann, Daniel J., 2014. "Bargaining over an endogenous agenda," Theoretical Economics, Econometric Society, vol. 9(2), May.
    2. 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.
    3. Zapal, Jan, 2020. "Simple Markovian equilibria in dynamic spatial legislative bargaining," European Journal of Political Economy, Elsevier, vol. 63(C).
    4. Tasos Kalandrakis, 2016. "Pareto efficiency in the dynamic one-dimensional bargaining model," Journal of Theoretical Politics, , vol. 28(4), pages 525-536, October.
    5. Hannu Vartiainen, 2015. "Dynamic stable set as a tournament solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 309-327, September.
    6. Anesi, Vincent & Duggan, John, 2018. "Existence and indeterminacy of markovian equilibria in dynamic bargaining games," Theoretical Economics, Econometric Society, vol. 13(2), May.
    7. Vincent Anesi & Daniel J Seidmann, 2012. "Bargaining in Standing Committees," Discussion Papers 2012-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    8. Nunnari, Salvatore, 2021. "Dynamic legislative bargaining with veto power: Theory and experiments," Games and Economic Behavior, Elsevier, vol. 126(C), pages 186-230.
    9. T. Renee Bowen & Ying Chen & H?lya Eraslan, 2014. "Mandatory versus Discretionary Spending: The Status Quo Effect," American Economic Review, American Economic Association, vol. 104(10), pages 2941-2974, October.
    10. Vincent Anesi & John Duggan, 2015. "Dynamic Bargaining and External Stability with Veto Players," Discussion Papers 2015-12, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    11. Anesi, Vincent & Duggan, John, 2017. "Dynamic bargaining and stability with veto players," Games and Economic Behavior, Elsevier, vol. 103(C), pages 30-40.
    12. Daniel Diermeier & Georgy Egorov & Konstantin Sonin, 2017. "Political Economy of Redistribution," Econometrica, Econometric Society, vol. 85, pages 851-870, May.
    13. Baron, David P. & Bowen, T. Renee, 2013. "Dynamic Coalitions," Research Papers 2128, Stanford University, Graduate School of Business.
    14. Bowen, T. Renee & Chen, Ying & Eraslan, Hülya & Zápal, Jan, 2017. "Efficiency of flexible budgetary institutions," Journal of Economic Theory, Elsevier, vol. 167(C), pages 148-176.
    15. Agranov, Marina & Cotton, Christopher & Tergiman, Chloe, 2020. "Persistence of power: Repeated multilateral bargaining with endogenous agenda setting authority," Journal of Public Economics, Elsevier, vol. 184(C).
    16. Anesi, Vincent, 2010. "Noncooperative foundations of stable sets in voting games," Games and Economic Behavior, Elsevier, vol. 70(2), pages 488-493, November.
    17. 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).
    18. Marina Azzimonti & Laura Karpuska & Gabriel Mihalache, 2020. "Bargaining over Mandatory Spending and Entitlements," Department of Economics Working Papers 20-02, Stony Brook University, Department of Economics.
    19. Marina Azzimonti & Gabriel P. Mihalache & Laura Karpuska, 2020. "Bargaining over Taxes and Entitlements," NBER Working Papers 27595, National Bureau of Economic Research, Inc.
    20. Duggan, John & Kalandrakis, Tasos, 2012. "Dynamic legislative policy making," Journal of Economic Theory, Elsevier, vol. 147(5), pages 1653-1688.

    More about this item

    Keywords

    bargaining; evolving default; stable set;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:not:notcdx:2011-10. 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: Jose V Guinot Saporta (email available below). General contact details of provider: https://edirc.repec.org/data/cdnotuk.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.