Coalition Formation and Selectorate Theory: An Experiment

Abstract

This paper uses a laboratory experiment to examine how different rules for re-selecting the leader of a group affects how that leader builds a winning coalition. Leaders play an inter-group game and then distribute winnings from that game within their group before standing for re-selection. The results of the experiment show that leaders of groups with large winning coalition systems rely heavily on distributing winnings through public goods, while leaders of groups with small winning coalition systems are more likely to target specific citizens with private goods. Furthermore, the experiment shows that supporters of small coalition leaders benefit from that support in future rounds by receiving more private goods than citizens that did not support the leader. Meanwhile, citizens that support a large coalition leader do not benefit from this support in future rounds. Therefore, small coalition leaders target individual citizens to maintain a coalition over time in a way not possible in a group with a large winning coalition. Finally, in the experiment, small coalition leaders increased their payoffs over time, suggesting that once power has been consolidated, small coalition leaders narrow their coalition.