Baron, D. (1991), Bargaining Majoritarian Incentives, Pork Barrel Programs and Procedural Control

Note similarity to Baron and Ferejohn (1989):

• Multi-lateral,
• Bargaining
• Divide the "pie" (not the dollar)
• Non-cooperative
• Use of stationary equilibrium
• Divisibility and transferability of benefits.

Looks at cases where B<T (benefits less than costs).

Programs are characterized by B, T (total benefits and total taxes). P (programs) are characterized by [math]B/T, P\in[0,\inf][/math].

• [math]B: \{b|b_{i}\gt 0, i=1,2,3,...,n, \sum b_{i}\leq B} * T is always distributed equally among n districts so \lt math\gt t_{i}=T/n[/math].
• Proposals are fully characterized by [math]b\in B[/math] and net benefits are [math]z_{i}=b_{i}-T/n[/math].
• Payoffs are discounted: [math]\delta^{\tau}z_{i}=U_{i}(z,\tau)[/math]. Extensive form is the same as before for closed rule.