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Wilfrid Laurier University Leaf
November 24, 2014
 
 
Canadian Excellence

Maria Gallego




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Maria Gallego

2005-05 EC: The Art of Compromise (working paper)


Maria Gallego and David Scoones

published: 2005 | Research publication | Working Paper - Economics

ABSTRACT:  Policy is modeled as the outcome of negotiations between two three-party parliamentary states. An election in jurisdiction A determines the composition of the legislature that selects a representative to negotiate an intergovernmental policy agreement with the representative from the legislature of jurisdiction B. Negotiations are modeled using Nash’s (1950) bargaining framework, modified to account for a simultaneous legislative ratification vote. Though agreements favor the legislative representative least willing to compromise, agreements between the bargainers may not follow the ordering of the parties’ ideal policies. An electoral outcome where support for the center party comes from extreme voters may emerge. 




Download: PDF (303k)    Gallego-Scoones-August-25-2005.pdf

revised Aug 30/05

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