Stable Coalition-Governments: The Case of Three Political Parties

M. Socorro Puy

No 2009-3, Working Papers from Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center

Abstract: We explore to what extent we can propose fixed negotiation rules as well as simple mechanisms (or protocols) that guarantee that political parties can form stable coalition-governments. We analyze the case where three parties can hold office in the form of two-party coalitions. We define the family of Weighted Rules, that select political agreements as a function of the bliss-points of the parties, and electoral results (Camson's Law and equal-share among others are included). We show that every weighted rule yields a stable coalition. We make use of the theory of implementation to design a protocol (in the form of a mechanism) that guarantees that a stable coalition will govern. We find that no dominant-solvable mechanism can be used for this purpose, but there is a simultaneous-unanimity mechanism that implements it in Nash and strong Nash equilibrium.

Keywords: Coalition-government; Stability; Nash-implementation (search for similar items in EconPapers)
JEL-codes: D71 D72 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-06
New Economics Papers: this item is included in nep-cdm, nep-gth and nep-pol
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https://theeconomics.uma.es/malagawpseries/Papers/METCwp2009-3.pdf First version, 2009 (application/pdf)

Related works:
Journal Article: Stable coalition governments: the case of three political parties (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:mal:wpaper:2009-3

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