Bicameralism and Government Formation

Fondazione Eni Enrico Mattei, Working Papers 01/2004; DOI: 10.2139/ssrn.312149
Source: RePEc

ABSTRACT There is a vast empirical literature on the allocation of corporate PAC contributions in Congressional elections and the influence that these contributions have on the policy-making process. The attention given to PAC contributions is far in excess of their actual importance. Corporate PAC contributions account for about 10% of Congressional campaign spending and major corporations allocate far more money to lobbying or philanthropy than their affiliated PACs make in contributions.

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    ABSTRACT: In a menu auction, players submit bids for all choices the auctioneer A can make, and A then makes the choice that maximizes the sum of bids. In a binomial menu auction (BMA), players submit acceptance sets (indicating which choices they would support), and A chooses the option that maximizes his utility subject to acceptance of the respective players. Monetary transfers may be implicit, but players may also bid by offering "favors" and the like. BMAs provide a unified representation of both monetary and non-monetary bidding, which I apply to model government formation. First, I analyze general BMAs, characterize the solution under complete information and establish outcome uniqueness (for both, sealed bid and Dutch formats). Second, in case monetary transfers are possible, BMAs are shown to implement VCG mechanisms. Finally, in case transfers are impossible, BMAs extend the model of proto-coalition bargaining and are specifically applied to government formation.
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    ABSTRACT: Thinking of electoral rules, common wisdom suggests that proportional rule is more fair, since all voters are equally represented: at times, it turns out that this is false. I study the formation of both Parliament and Government; for the composition of the former I consider plurality and proportional rule; for the formation of the latter, I assume that parties play a non-cooperative game `a la Rubinstein. I show that, unless parties are impatient to form a Government, proportional electoral rules translate into a more distortive distribution of power among parties than plurality rule; this happens because of the bargaining power of small parties during Government formation.
    Documents de treball IEB, Nº. 27, 2009. 06/2011;
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    ABSTRACT: This study compares the representativeness of voters in the proportional electoral system with the situation under plurality rule. Representativeness is commonly measured by comparing parties' received votes with their shares of seats in the Parliament, this implies that proportional rule should always represent voters better. A coalition within the Parliament, however, rules the country without interference. When a coalition is formed, the pivotal role of small parties and the proposal right of the formateur may significantly impact the distribution of power. Focusing on the coalition formation stage, I demonstrate that proportional rule is more representative only under specific conditions. Otherwise, introducing certain distortions in the distribution of seats among parties can actually improve representativeness.
    European Journal of Political Economy 01/2010; 27(2):311-327. · 1.44 Impact Factor

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May 23, 2014