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Baron Ferejohn (1989) - Bargaining In Legislatures (view source)
Revision as of 19:59, 18 May 2010
, 19:59, 18 May 2010no edit summary
#Recognition in the first period, in conjuntion with the closed rule, gets the member the largest share. This is agenda power. The proposed gets at least half the benefits.
#The initial offer is accepted and the legislature adjourns after 1 period. This results from impatience.
#If the members have different probabilities of recognition their continuation value in period 1 is equal to their probability of recognition.
#A recognised member will choose to share with the members with the lowest continuation values, and the member with the highest probability will have the lowest ex-ante value for the game.
#The SPNE doesn't say who should be choosen to share with, and can randomize. Randomization provides a stationary symmetric solution.
