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Rhetoric in Legislative Bargaining with Asymmetric Information

Author

Listed:
  • Ying Chen

    (Arizona State University)

  • Hülya Eraslan

    (John Hopkins University)

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.

Suggested Citation

  • Ying Chen & Hülya Eraslan, 2010. "Rhetoric in Legislative Bargaining with Asymmetric Information," Koç University-TUSIAD Economic Research Forum Working Papers 1021, Koc University-TUSIAD Economic Research Forum.
    • Handle: RePEc:koc:wpaper:1021
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    References listed on IDEAS

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    Cited by:

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    2. Baron, David P. & Bowen, T. Renee & Nunnari, Salvatore, 2017. "Durable coalitions and communication: Public versus private negotiations," Journal of Public Economics, Elsevier, vol. 156(C), pages 1-13.
    3. Ying Chen & Hülya Eraslan, 2017. "Dynamic Agenda Setting," American Economic Journal: Microeconomics, American Economic Association, vol. 9(2), pages 1-32, May.
    4. Harstad, Bård, 2023. "Pledge-and-review bargaining," Journal of Economic Theory, Elsevier, vol. 207(C).
    5. Vincent Anesi & Mikhail Safronov, 2023. "Deciding When To Decide: Collective Deliberation And Obstruction," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 757-781, May.
    6. Piazolo, David & Vanberg, Christoph, 2022. "Legislative bargaining with private information: A comparison of majority and unanimity rule," Working Papers 0708, University of Heidelberg, Department of Economics.
    7. Harstad, Bård, 2021. "A Theory of Pledge-and-Review Bargaining," Memorandum 5/2022, Oslo University, Department of Economics, revised 21 Jun 2021.
    8. Vincent Anesi, 2018. "Dynamic Legislative Policy Making under Adverse Selection," Discussion Papers 2018-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Ying Chen & Hülya Eraslan, 2013. "Informational loss in bundled bargaining," Journal of Theoretical Politics, , vol. 25(3), pages 338-362, July.
    10. Agranov, Marina & Tergiman, Chloe, 2014. "Communication in multilateral bargaining," Journal of Public Economics, Elsevier, vol. 118(C), pages 75-85.
    11. Miettinen, Topi & Vanberg, Christoph, 2020. "Commitment and Conflict in Multilateral Bargaining," Working Papers 0679, University of Heidelberg, Department of Economics.
    12. Louis-Sidois, Charles & Musolff, Leon Andreas, 2024. "Buying voters with uncertain instrumental preferences," Theoretical Economics, Econometric Society, vol. 19(3), July.
    13. Jan Zápal, 2017. "Crafting consensus," Public Choice, Springer, vol. 173(1), pages 169-200, October.
    14. Ma, Zizhen, 2023. "Efficiency and surplus distribution in majoritarian reputational bargaining," Journal of Economic Theory, Elsevier, vol. 210(C).
    15. Chen, Ying & Zápal, Jan, 2022. "Sequential vote buying," Journal of Economic Theory, Elsevier, vol. 205(C).
    16. Baerg, Nicole Rae & Krainin, Colin, 2022. "Divided committees and strategic vagueness," European Journal of Political Economy, Elsevier, vol. 74(C).
    17. Chen, Jidong, 2023. "Sequential agenda setting with strategic and informative voting," Journal of Public Economics, Elsevier, vol. 226(C).

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    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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