Timing of Commitment in Coalitional Bargaining

44 Pages Posted: 9 Mar 2021 Last revised: 27 Aug 2021

See all articles by Simon Siegenthaler

Simon Siegenthaler

University of Texas at Dallas, Naveen Jindal School of Management

Aaron Kamm

New York University (NYU) - New York University Abu Dhabi

Date Written: March 6, 2021

Abstract

The power to influence the allocation of resources in coalitional bargaining stems from an agent's ability to form multiple majority coalitions (pivotality) or from the relative vote share the agent contributes to a coalition (proportionality). We distinguish between coalitional commitment, where parties defer distributive bargaining when forming a coalition, and allocative commitment, where allocations are determined at the point of coalition formation. We show how the timing of commitment affects the source bargaining power: proportionality is key when coalitional commitment is available prior to allocative commitment, but pivotality is key when there is no difference in timing between the two types of commitment. Our results highlight that, when analyzing multilateral negotiations, the timing of commitment should be considered as a crucial factor determining the distribution of resources.

Keywords: Experiment, Bargaining Power, Coalition Formation, Timing of Commitment, Gamson's Law

JEL Classification: C71, C92, D72, H10

Suggested Citation

Siegenthaler, Simon and Kamm, Aaron, Timing of Commitment in Coalitional Bargaining (March 6, 2021). Available at SSRN: https://ssrn.com/abstract=3779570 or http://dx.doi.org/10.2139/ssrn.3779570

Simon Siegenthaler (Contact Author)

University of Texas at Dallas, Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

HOME PAGE: http://www.simonsiegenthaler.com

Aaron Kamm

New York University (NYU) - New York University Abu Dhabi ( email )

PO Box 129188
Abu Dhabi
United Arab Emirates

HOME PAGE: http://sites.google.com/site/akammhome/

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