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Bargaining

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  • Daniel Diermeier
  • Roger B. Myerson

Abstract

This paper compares the incentives to create obstructive committee systems under different constitutionally specified requirements for passing legislation. The Shapley value is used to measure the distribution of bargaining power in the legislature. If the legislature is bicameral or the president can veto, then each chamber of the legislature can increase its total bargaining power, at the expense of the other chamber or the president, by giving its committee chairmen the power to block legislation. This incentive to let committees act as gatekeepers with veto power can persist even when such power may cause some opportunities for beneficial legislation to be lost. This incentive is absent, however, in unicameral parliamentary systems.

Suggested Citation

  • Daniel Diermeier & Roger B. Myerson, 1994. "Bargaining," Discussion Papers 1089, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    • Handle: RePEc:nwu:cmsems:1089
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    File URL: http://www.kellogg.northwestern.edu/research/math/papers/1089.pdf
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    References listed on IDEAS

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    1. Baron, David P. & Ferejohn, John A., 1989. "Bargaining in Legislatures," American Political Science Review, Cambridge University Press, vol. 83(4), pages 1181-1206, December.
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    Cited by:

    1. Robert C. Marshall & Antonio Merlo, 2004. "Pattern Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 239-255, February.
    2. Edward J. Schumacher, "undated". "What Explains Union Membership Contract Coverage Wage Differentials?," Working Papers 9719, East Carolina University, Department of Economics.
    3. David I. Laibson & Xavier Gabaix, 2000. "A Boundedly Rational Decision Algorithm," American Economic Review, American Economic Association, vol. 90(2), pages 433-438, May.
    4. Vanessa V Tinsley, 2003. "Firms and Layoffs: The Impact of Unionization on Involuntary Job Loss," Working Papers 03-09, Center for Economic Studies, U.S. Census Bureau.
    5. Colin Camerer & Teck-Hua Ho & Juin Kuan Chong, 2003. "A cognitive hierarchy theory of one-shot games: Some preliminary results," Levine's Bibliography 506439000000000495, UCLA Department of Economics.
    6. Robert C. Johansson & Jay S. Coggins, 2002. "Union Density Effects in the Supermarket Industry," Journal of Labor Research, Transaction Publishers, vol. 23(4), pages 673-684, October.
    7. Cooper, David J. & Van Huyck, John B., 2003. "Evidence on the equivalence of the strategic and extensive form representation of games," Journal of Economic Theory, Elsevier, vol. 110(2), pages 290-308, June.

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