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Diermeier, Daniel
Fong, Pohan
Year of Publication: 
Series/Report no.: 
Discussion Paper No. 1465
We present a dynamic model of legislative bargaining in which policy making proceeds until the proposer has no more incentive to make a new proposal to replace the previously approved policy. We characterize stationary Markov perfect equilibria for the game and show that in all pure-strategy equilibria, a majority of voters without proposal power have an incentive to protect each others' benefits to secure their own long-term bargaining positions in the legislature. As a consequence, the value of proposal power is constrained.
Document Type: 
Working Paper

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