Formal versus informal legislative bargaining

B-Tier
Journal: Games and Economic Behavior
Year: 2016
Volume: 96
Issue: C
Pages: 1-17

Authors (3)

de Groot Ruiz, Adrian (not in RePEc) Ramer, Roald (Universiteit van Amsterdam) Schram, Arthur (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study how the formality of a bargaining procedure affects its outcome. We compare a formal Baron–Ferejohn bargaining procedure to an informal procedure where players make and accept proposals in continuous time. Both constitute non-cooperative games corresponding to the same bargaining problem: a three-player median voter setting with an external disagreement point. This allows us to study formality in the presence and absence of a core and provides a natural explanation for the effects of preference polarization. Our results show that polarization hurts the median player and that formality matters. The median player is significantly better off under informal bargaining.

Technical Details

RePEc Handle
repec:eee:gamebe:v:96:y:2016:i:c:p:1-17
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29