Delegation in Veto Bargaining
نویسندگان
چکیده
A proposer requires the approval of a veto player to change status quo. Preferences are single peaked. Proposer is uncertain about Vetoer's ideal point. We study Proposer's optimal mechanism without transfers. Vetoer given menu, or delegation set, choose from. The set balances extent compromise with risk veto. Under reasonable conditions, "full delegation" optimal: can any action between quo and action. This outcome largely nullifies bargaining power; frequently obtains her point, there Pareto efficiency despite asymmetric information. More generally, we identify when "interval optimal. Optimal interval be improvement over cheap talk. derive comparative statics. receives less discretion preferences more likely aligned, by contrast expertise-based delegation. Methodologically, our analysis handles stochastic mechanisms.
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ژورنال
عنوان ژورنال: The American Economic Review
سال: 2021
ISSN: ['2640-205X', '2640-2068']
DOI: https://doi.org/10.1257/aer.20201817