Dismissal power

Costel Andonie

Journal of Mathematical Economics, 2023, vol. 106, issue C

Abstract: We study dismissal power in a simple bargaining model. Player 1 makes a policy proposal which player 2 may approve or reject. A proposal contains a random component. If the proposal is approved, then, after the policy realization, one of the two players can dismiss the agreement. First, we show that dismissal power causes inefficiency. Second, if player 1 (proposer) holds dismissal power, then dismissal power hurts player 1. Third, if player 2 holds dismissal power, then dismissal power benefits that player if the gains from bargaining are small, or moderate. Finally, we study a general model where player 1 can choose the full distribution of a proposal.

Keywords: Policy bargaining; Dismissal power (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304406823000198
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:106:y:2023:i:c:s0304406823000198

DOI: 10.1016/j.jmateco.2023.102826

Access Statistics for this article

Journal of Mathematical Economics is currently edited by Atsushi (A.) Kajii

More articles in Journal of Mathematical Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().