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Power illusion in coalitional bargaining: An experimental analysis

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  • Maaser, Nicola
  • Paetzel, Fabian
  • Traub, Stefan
Abstract
One feature of legislative bargaining in naturally occurring settings is that the distribution of seats or voting weights often does not accurately reflect bargaining power. Game-theoretic predictions about payoffs and coalition formation are insensitive to nominal differences in vote distributions and instead only depend on pivotality. We conduct an experimental test of the classical Baron-Ferejohn model with five-player groups. Holding real power constant, we compare treatments with differences in nominal power. We find that initial effects of nominal differences become small or disappear with experience. Our results also point to the complexity of the environment as having a negative impact on the speed at which this transition takes place. Finally, and of particular importance as a methodological observation, giving subjects a pause accelerates learning.

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  • Maaser, Nicola & Paetzel, Fabian & Traub, Stefan, 2019. "Power illusion in coalitional bargaining: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 117(C), pages 433-450.
  • Handle: RePEc:eee:gamebe:v:117:y:2019:i:c:p:433-450
    DOI: 10.1016/j.geb.2019.07.010
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    Cited by:

    1. repec:nad:wpaper:20220080 is not listed on IDEAS
    2. Andrzej Baranski & Rebecca Morton, 2022. "The determinants of multilateral bargaining: a comprehensive analysis of Baron and Ferejohn majoritarian bargaining experiments," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1079-1108, September.
    3. Aaron Kamm & Simon Siegenthaler, 2024. "Commitment timing in coalitional bargaining," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 130-154, March.
    4. Andrzej Baranski & Ernesto Reuben, 2023. "Competing for Proposal Rights: Theory and Experimental Evidence," Working Papers 20220085, New York University Abu Dhabi, Department of Social Science, revised Mar 2023.
    5. Nicola Maaser & Fabian Paetzel & Stefan Traub, 2022. "Gender and Nominal Power in Multilateral Bargaining," Games, MDPI, vol. 13(1), pages 1-25, January.
    6. Baranski, Andrzej & Haas, Nicholas, 2023. "The timing of communication and retaliation in bargaining: An experimental study," Journal of Economic Psychology, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Legislative bargaining; Alternating offers; Experiments; Weighted voting; Coalition formation;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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