QED Working Paper Number

We develop a model of repeated multilateral bargaining that links cycles via the identity of the agenda setter. In sharp contrast to the standard history-independent equilibrium predictions, in an experiment, we observe stable and persistent coalitions in terms of member identity, allocations to coalition partners, and agenda-setter identity. Our results call into question the validity of restricting attention to static, history-independent strategies in dynamic bargaining games. We show that weakening the standard equilibria concepts to allow players to condition on a single piece of history is enough to generate equilibria which are consistent with observed laboratory outcomes.

Marina Agranov
Chloe Tergiman
JEL Codes
legislative bargaining
vote of confidence
legislative decision making
political institutions
dynamic bargaining
Working Paper