Pré-Publication, Document De Travail (Working Paper) Année : 2025

Political Brinkmanship and Compromise

Résumé

We study how do-or-die threats ending negotiations affect gridlock and welfare when two opposing parties bargain. Failure to agree on a deal in any period implies a continuation of the negotiation. However, under brinkmanship, agreement failure in any period may precipitate a crisis with a small chance. In equilibrium, such brinkmanship threats improve the probability of an agreement, but also increase the risk of crisis. Brinkmanship reduces welfare when one might think it is most needed: severe gridlock. In this case, despite this global welfare loss, a party has incentives to use brinkmanship strategically to obtain a favorable bargaining position
Fichier principal
Vignette du fichier
WP_202128__3.pdf (505) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)

Dates et versions

halshs-03225030 , version 1 (12-05-2021)
halshs-03225030 , version 2 (13-11-2023)
halshs-03225030 , version 3 (11-02-2025)

Identifiants

  • HAL Id : halshs-03225030 , version 3

Citer

Helios Herrera, Antonin Macé, Matias Nùnez. Political Brinkmanship and Compromise. 2025. ⟨halshs-03225030v3⟩
373 Consultations
277 Téléchargements

Partager

More