Computation of equilibrium values in the Baron and Ferejohn bargaining model
Computation of exact equilibrium values for n-player divide-the-dollar legislative bargaining games as in Baron and Ferejohn (1989) with general quota voting rules, recognition probabilities, and discount factors, can be achieved by solving at most n bivariate square linear systems of equations. This approach recovers Eraslan's (2002) uniqueness result and relies on a characterization of equilibria in terms of two variables that satisfy a pair of piecewise linear equations.
Year of publication: |
2014-08
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Authors: | Kalandrakis, Tasos |
Institutions: | University of Rochester - Wallis Institute of Political Economy |
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