机构:
Univ Utah, David Eccles Sch Business, Div Quantit Anal Markets & Org, Salt Lake City, UT USAUniv Amsterdam, Amsterdam Sch Econ, Amsterdam, Netherlands
In legislative bargaining, the proposer is often able to extract a greater proportion of the surplus. However, a higher likelihood of being selected as the proposer can backfire, as it may reduce the probability that the agent is included in a winning coalition. We experimentally test the theoretical prediction of potentially negative returns to recognition probability in two-period legislative bargaining noted in Baron and Ferejohn (1989). We find that higher recognition probability benefits subjects in all treatments, except one in which we automate the second period. It is because proposers often favor the member with the greater recognition probability as a coalition partner, and such tendency varies depending on the proposer's recognition probability, counter to the theoretical prediction. In all treatments, a vast majority of subjects exhibit a strict preference for higher recognition probability.
机构:
Meijo Univ, Fac Econ, Tempaku Ku, 1-501 Shiogamaguchi, Nagoya, Aichi 4688502, JapanMeijo Univ, Fac Econ, Tempaku Ku, 1-501 Shiogamaguchi, Nagoya, Aichi 4688502, Japan