Rhetoric in Legislative Bargaining with Asymmetric Information

Ying Chen and Hülya Eraslan

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: In this paper we analyze a legislative bargaining game in which parties privately informed about their preferences bargain over an ideological and a distributive decision. Communication takes place before a proposal is offered and majority rule voting determines the outcome. When the private information pertains to the ideological intensities but the ideological positions are publicly known, it may not be possible to have informative communication from the legislator who is ideologically distant from the proposer, but the more moderate legislator can communicate whether he would "compromise" or fight" on ideology. If instead the private information pertains to the ideological positions, then all parties may convey whether they will "cooperate," "compromise," or fight" on ideology. When the uncertainty is about ideological intensity, the proposer is always better on making proposals for the two dimensions together despite separable preferences, but when the uncertainty is about ideological positions, bundling can result in informational loss which hurts the proposer.

JEL-codes: C78 D72 D82 D83 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-07
New Economics Papers: this item is included in nep-cdm, nep-cta, nep-gth and nep-pol
References: Add references at CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Rhetoric in legislative bargaining with asymmetric information (2014)
Working Paper: Rhetoric in Legislative Bargaining with Asymmetric Information (2010)
Working Paper: Rhetoric in Legislative Bargaining with Asymmetric Information (2010)
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