A model of protocoalition bargaining with breakdown probability

This paper analyses a model of legislative bargaining in which parties form tentative coalitions (protocoalitions) before deciding on the allocation of a resource. Protocoalitions may fail to reach an agreement, in which case they may be dissolved (breakdown) and a new protocoalition may form. We sh...

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Main Author: Montero, Maria
Format: Article
Published: Multidisciplinary Digital Publishing Institute 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/29066/
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author Montero, Maria
author_facet Montero, Maria
author_sort Montero, Maria
building Nottingham Research Data Repository
collection Online Access
description This paper analyses a model of legislative bargaining in which parties form tentative coalitions (protocoalitions) before deciding on the allocation of a resource. Protocoalitions may fail to reach an agreement, in which case they may be dissolved (breakdown) and a new protocoalition may form. We show that agreement is immediate in equilibrium, and the proposer advantage disappears as the breakdown probability goes to zero. We then turn to the special case of apex games and explore the consequences of varying the probabilities that govern the selection of formateurs and proposers. Letting the breakdown probability go to zero, most of the probabilities considered lead to the same ex post pay-off division. Ex ante expected pay-offs may follow a counterintuitive pattern: as the bargaining power of weak players within a protocoalition increases, the weak players may expect a lower pay-off ex ante.
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spelling nottingham-290662020-05-04T17:06:12Z https://eprints.nottingham.ac.uk/29066/ A model of protocoalition bargaining with breakdown probability Montero, Maria This paper analyses a model of legislative bargaining in which parties form tentative coalitions (protocoalitions) before deciding on the allocation of a resource. Protocoalitions may fail to reach an agreement, in which case they may be dissolved (breakdown) and a new protocoalition may form. We show that agreement is immediate in equilibrium, and the proposer advantage disappears as the breakdown probability goes to zero. We then turn to the special case of apex games and explore the consequences of varying the probabilities that govern the selection of formateurs and proposers. Letting the breakdown probability go to zero, most of the probabilities considered lead to the same ex post pay-off division. Ex ante expected pay-offs may follow a counterintuitive pattern: as the bargaining power of weak players within a protocoalition increases, the weak players may expect a lower pay-off ex ante. Multidisciplinary Digital Publishing Institute 2015-04-22 Article PeerReviewed Montero, Maria (2015) A model of protocoalition bargaining with breakdown probability. Games, 6 (2). pp. 39-56. ISSN 2073-4336 coalition formation; legislative bargaining; apex games http://www.mdpi.com/2073-4336/6/2/39 doi:10.3390/g6020039 doi:10.3390/g6020039
spellingShingle coalition formation; legislative bargaining; apex games
Montero, Maria
A model of protocoalition bargaining with breakdown probability
title A model of protocoalition bargaining with breakdown probability
title_full A model of protocoalition bargaining with breakdown probability
title_fullStr A model of protocoalition bargaining with breakdown probability
title_full_unstemmed A model of protocoalition bargaining with breakdown probability
title_short A model of protocoalition bargaining with breakdown probability
title_sort model of protocoalition bargaining with breakdown probability
topic coalition formation; legislative bargaining; apex games
url https://eprints.nottingham.ac.uk/29066/
https://eprints.nottingham.ac.uk/29066/
https://eprints.nottingham.ac.uk/29066/