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An Empirical Investigation of Coalitional Bargaining Procedures

Daniel Diermeier
Northwestern University - Kellogg School of Management

Antonio Merlo
University of Pennsylvania - Department of Economics


October 2001

PIER Working Paper No. 01-042

Abstract:     
Models of government formation processes in multi party democracies are usually highly sensitive to the rules that govern the selection of formateurs (i.e., the parties selected to propose a potential government). The theoretical literature has focused on two selection rules: selection proportional to seat share, and selection in order of seat share. In this paper we use a new data set on government formations in 11 parliamentary democracies to empirically assess which selection rule most closely approximates the data. We find that while there is little empirical support for selection in order of seat share, proportional selection fits the data well.

Keywords: Government Formation, Proposer Selection, Bargaining Procedures

JEL Classifications: D72, H19

Working Paper Series

Date posted: November 27, 2001 ; Last revised: November 29, 2001

Suggested Citation

Diermeier, Daniel and Merlo, Antonio M., An Empirical Investigation of Coalitional Bargaining Procedures (October 2001). PIER Working Paper No. 01-042. Available at SSRN: http://ssrn.com/abstract=291169 or doi:10.2139/ssrn.291169


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Contact Information

Antonio M. Merlo (Contact Author)
University of Pennsylvania - Department of Economics ( email )
3718 Locust Walk
Philadelphia, PA 19104
United States
215-898-7933 (Phone)
215-573-2057 (Fax)
HOME PAGE: http://www.ssc.upenn.edu/~merloa
Daniel Diermeier
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
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